In an economic model:
A) exogenous variables and endogenous variables are both fixed when they enter the model.
B) endogenous variables and exogenous variables are both determined within the model.
C) endogenous variables affect exogenous variables.
D) exogenous variables affect endogenous variables.

Question

Quizplus · Accepted Answer

In an economic model, exogenous variables are typically determined outside of the model and affect the endogenous variables within the model. Therefore, the correct choice is D.

In an Economic Model