Consider the Following Equation for Household Consumption Expenditure: Consmptn=

question 4

Multiple Choice

Consider the following equation for household consumption expenditure: Consmptn= ₀+ ₁Inc + ₂Consmptn_-1+ u
Where 'Consmptn' measures the monthly consumption expenditure of a household, 'Inc' measures household income and 'Consmptn_-1' is the consumption expenditure in the previous month. Consmptn_-1 is a _____ variable.

• A)exogenous
• B)binary variable
• C)lagged dependent
• D)proxy variable

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Definitions:

Social Competence

The ability to handle social interactions and relationships effectively and appropriately.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Facts

Objective statements or data based on evidence, truth, and reality, without any biases or interpretations.

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Observable actions or reactions of individuals, often studied in psychology and sociology to understand the interaction between individuals and their environment.