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    Question

    Multicollinearity

    causes┬а
    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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