Which of the following statements are true concerning a triangular or recursive system?

i) The parameters can be validly estimated using separate applications of OLS to

each equation


ii) The independent variables may be correlated with the error terms in other

equations


iii) An application of 2SLS would lead to unbiased but inefficient parameter estimates


iv) The independent variables may be correlated with the error terms in the equations

in which they appear as independent variables
(A)(ii) and (iv) only (B)(i) and (iii) only (C)(i), (ii), and (iii) only (D)(i), (ii), (iii), and (iv)
C