Some people claim that instrumental variable models may lack external validity. This would be the case when:

Some people claim that instrumental variable models may lack external validity. This would be the case when:



A. The instrument is exogenous for only certain types of people
B. The instrument is relevant for only certain types of people
C. The instrument is relevant for everyone
D. None of the above


Answer: B. The instrument is relevant for only certain types of people


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