Which of the following is an exogenous variable in our model of the goods market in Chapter 3?

Question

Quizplus · Accepted Answer

Exogenous variables are those that are determined outside the model and affect the model's variables. Among the options given, government spending (G) is the only variable determined outside the model as a policy variable by the government. The other variables - consumption (C), saving (S), and disposable income (YD) - are endogenous variables that are determined within the model.

Which of the Following Is an Exogenous Variable in Our