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

question 21

Multiple Choice

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

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

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Definitions:

Initial Value Method

An accounting method that records an investment at its original cost without adjusting for changes in market value or the investee's earnings, except to recognize impairments.

Intra-entity Transfers

Transactions occurring between divisions or units within the same company.

Income Taxes

Taxes levied by governments on the income generated by individuals and businesses within their jurisdiction.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods/services at a profit.