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Suppose the true model is given by y = β0 + β1x1 + β2 x2 +...

Suppose the true model is given by y = β0 + β1x1 + β2 x2 + u , if we estimate the following models: (I) y = β0 + β1x1 + β2 x2 + β3x3 + u (II) y = β0 + β1x1 + u

what are the consequences?

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