There Are Three Macroeconomic Variables from the Closed Economy Goods

question 7

Essay

There are three macroeconomic variables from the closed economy goods market model C, I, and G. Explain whether each variable is endogenous or exogenous.

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Definitions:

Inflation Rate

How quickly the average price of goods and services climbs, lessening the value of money.

Currency

The system of money in general use in a country or economic bloc, used as a medium of exchange for goods and services.

Secondary Reserves

Liquid assets that are not used as part of a firm's primary operations but can be quickly converted into cash to meet short-term liabilities.

Treasury Bills

Short-term government securities issued with a term typically less than one year, used to raise funds for government expenses.