Refer to the Simultaneous Equations Model Above

Refer to the simultaneous equations model above. The reduced form error from the reduced form equation for K₂ will be a:

A) quadratic function of u₁ and u₂, and correlated with z₁ and z₂.
B) quadratic function of u₁ and u₂, and uncorrelated with z₁ and z₂.
C) linear function of u₁ and u₂, and correlated with z₁ and z₂.
D) linear function of u₁ and u₂, and uncorrelated with z₁ and z₂.