Choose the Statement That Best Describes How Endogenous Variables Differ

question 140

Multiple Choice

Choose the statement that best describes how endogenous variables differ from exogenous variables.

• A)An endogenous variable is a flow,while an exogenous variable is a stock.
• B)An endogenous variable is explained outside the theory and influences an exogenous variable while an exogenous variable is explained within the theory.
• C)An exogenous variable is a function of the endogenous variable,and both are flow variables.
• D)An endogenous variable is a function of the exogenous variable,and both are stock variables.
• E)An endogenous variable is explained within the theory,while an exogenous variable influences the endogenous variables but is determined outside the theory.

---

Definitions:

Capital Employed

The total value of all assets used in a business to generate profits, typically calculated as equity plus non-current liabilities.

Economic Value Added

A financial performance metric that calculates the value a company generates from its capital investments, beyond the cost of capital.

Weighted Average Cost Of Capital

The overall rate of return that a company is expected to pay on average to all its security holders to finance its assets.

Market Value Of Equity

The total dollar value of a company's shares of stock on the open market.