The "holding all other independent variables constant" condition is important
A)to ensure that we are correctly estimating marginal effects.
B)because it comes at the end of every definition in economics.
C)because economists want to know how a change in the dependent variable affects the independent variable.
D)to ensure that the error term is correlated with the independent variables.

Question

Quizplus · Accepted Answer

Holding all other independent variables constant helps isolate the effect of a single independent variable on the dependent variable, allowing for accurate estimation of marginal effects.

The "Holding All Other Independent Variables Constant" Condition Is Important