Omitted Variable Bias

Multiple Choice

Omitted variable bias

A) will always be present as long as the regression R2 < 1.
B) is always there but is negligible in almost all economic examples.
C) exists if the omitted variable is correlated with the included regressor but is not a determinant of the dependent variable.
D) exists if the omitted variable is correlated with the included regressor and is a determinant of the dependent variable.