In a model that analyzes the effects of a tax change,the tax serves as an endogenous variable.

Name: In a model that analyzes the effects of a tax change,the tax serves as an endogenous variable.
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In such a model, the tax change is typically considered an exogenous variable because it is determined outside the model and is used to study its effects on other variables within the model, which are the endogenous variables.

In a Model That Analyzes the Effects of a Tax