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Which of the Following Assumptions Is Known as Exclusion Restrictions

Question 11

Multiple Choice

Which of the following assumptions is known as exclusion restrictions?


A) The assumption that an instrumental variable is excluded from a regression model and is correlated with the error term.
B) The assumption that an instrumental variable is excluded from a regression model and is correlated with an exogenous explanatory variable.
C) The assumption that an exogenous explanatory variable is excluded from a regression model and is uncorrelated with the error term.
D) The assumption that an endogenous explanatory variable excluded from a regression model and is uncorrelated with the error term.

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