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      Question

      Multicollinearity

      causes 
      A low R-squares Correct Answer Incorrect Answer
      B biased coefficient estimates Correct Answer Incorrect Answer
      C inconsistent coefficient estimates Correct Answer Incorrect Answer
      D none of these Correct Answer Incorrect Answer

      Solution

      All the options are not the result of Multicollinearity. In presence of multicollinearity, variance gets inflated and t ratios are insignificant but R^2 is high.

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