In the IS Equation,which of the Following Is an Endogenous

question 26

Multiple Choice

In the IS equation,which of the following is an endogenous variable?

• A)government purchases
• B)real interest rate
• C)financial frictions
• D)all of the above
• E)none of the above

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Definitions:

Depreciation

The structured apportioning of the price of a tangible asset across its operational life.

Sales Commissions

Payments made to salespersons or agents based on the sales they generate.

Product Costs

All costs incurred to acquire or produce the finished products that are sold to customers.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.