In the Equation Y = C + I + G

question 2

Multiple Choice

In the equation Y = C + I + G,

• A)only I is an exogenous variable determined by factors outside the model.
• B)only G is an exogenous variable determined by factors outside the model.
• C)C is an endogenous variable determined by factors inside the model.
• D)I and G are exogenous variables determined by factors outside the model.
• E)A,b,and c

---

Definitions:

Net Income

The net profit figure for a company, achieved by subtracting all operational costs and tax liabilities from its revenue.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, typically associated with ownership of 20-50% of voting stock.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control them.