In an Economic Model

question 65

Multiple Choice

In an economic model:

• A) exogenous variables and endogenous variables are both fixed when they enter the model.
• B) endogenous variables and exogenous variables are both determined within the model.
• C) endogenous variables affect exogenous variables.
• D) exogenous variables affect endogenous variables.

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Definitions:

Acid-test Ratio

A stringent indicator of a company's ability to quickly convert its short-term assets into cash to cover short-term liabilities, excluding inventory.