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4. True/False. You must justify your answer. If your regression suffers from imperfect multicollinearity, your estimated coefficients will be biased We should always interpret the coefficient on a (non-dummy) control variable as the causal effect of changing the control variable by one unit of the dependent variable a. b.

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a) If your regression suffers from imperfect multi-collinearity, your estimated coefficients will be biased. (True)

b) We should always interpret the coefficient on a non-dummy control variable as the causal effect of changing the control variable by one unit of the dependent variable. (False)

since the interpretation is always done by changing one unit of control variable, what effect will be on dependent variable.

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