Choose the Statement That Best Describes How Endogenous Variables Differ

question 45

Multiple Choice

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

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