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Bill Has Noticed That Increases in Unemployment Insurance Claims Are

Question 443

Multiple Choice

Bill has noticed that increases in unemployment insurance claims are associated with recessions,and therefore he advocates limits on unemployment insurance so as to prevent recessions.Martha has noticed that most drug addicts once attended schools,and therefore she advocates getting rid of schools so as to prevent drug addiction.


A) The reasoning of both Bill and Martha suffers from the omitted variable problem.
B) The reasoning of both Bill and Martha suffers from the reverse causality problem.
C) Bill's reasoning suffers from the reverse causality problem,and Martha's reasoning suffers from the omitted variable problem.
D) Martha's reasoning suffers from the reverse causality problem,and Bill's reasoning suffers from the omitted variable problem.

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