Tim has noticed that increases in unemployment insurance claims are associated with recessions, and therefore advocates limits on unemployment insurance so as to prevent recessions. Yana has noticed that most drunk drivers once attended schools, and therefore advocates getting rid of schools so as to prevent deaths resulting from drunk driving. What do we know about the reasoning of Tim and Yana?
A) The reasoning of both Tim and Yana suffers from the omitted variable problem.
B) The reasoning of both Tim and Yana suffers from the reverse causality problem.
C) Tim's reasoning suffers from the reverse causality problem, and Yana's reasoning suffers from the omitted variable problem.
D) Yana's reasoning suffers from the reverse causality problem, and Tim's reasoning suffers from the omitted variable problem.
Correct Answer:
Verified
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