Which of the following statements is true?
A)The use of 2SLS is applicable to simultaneous equations model with at most two equations.
B)Identification of simultaneous equations with three or more equations is based on matrix algebra.
C)2SLS method used in the estimation of simultaneous equations is an example of a system estimation method.
D)The maximum number of equations permissible for a simultaneous equations model is four.

Question

Quizplus · Accepted Answer

Identification of simultaneous equations with three or more equations indeed relies on matrix algebra to handle the complexity and interdependencies of the equations. This approach allows for the analysis of systems where variables are mutually dependent.

Which of the Following Statements Is True