In the economy, the dependence of a variable Y on variable X is not always immediate. Consider the consumption function: Yt = constant + 0.4Xt + 0....

In the economy, the dependence of a variable Y on variable X is not always immediate. Consider the consumption function: Yt = constant + 0.4Xt + 0.3Xt-1 + 0.2Xt-2 + ut and in general terms, the function is written as: Yt = alpha + Beta 0Xt + Beta 1Xt-1 + Beta 2Xt-2 + .....+ Beta kXt-k.+ut. This function is the result of an assumption that a person receives a salary increase of R$ 2,000.00 in the annual payment, this being a permanent increase in their salary. The person may decide to increase consumption expenses in the first year by R$ 800.00, in the second year by R$ 600.00 more, and in the third year by R$ 400.00 more, saving the rest. At the end of the third year, annual consumption expenses will have increased by $ 1,800. Based on the method of least squares, analyze the following statements: I- The indirect least squares method is applied when the equation is exactly identified. II- The Hausman test is applied to avoid biased and inconsistent estimators before estimating the least squares method. III- The exactly identified equation is the one in which the number of parameters to be defined is equal to the number of

I- The indirect least squares method is applied when the equation is exactly identified.
II- The Hausman test is applied to avoid biased and inconsistent estimators before estimating the least squares method.
III- The exactly identified equation is the one in which the number of parameters to be defined is equal to the number of observations.
A Only I is true.
B Only II is true.
C Only III is true.
D I, II and III are true.