Choose the Statement That Best Describes How Endogenous Variables Differ

question 46

Multiple Choice

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

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

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes but does not have to pay until a future date, often due to temporary differences between accounting and tax rules.

Taxable Amounts

The portions of income, estate, or transactions subject to tax, according to applicable tax laws.

Deferred Tax Liabilities

Future tax payments resulting from temporary differences between the book value and the tax basis of assets and liabilities.