In an Economic Model,an Endogenous Variable Is

question 10

Multiple Choice

In an economic model,an endogenous variable is

• A) a stand-in for more complicated variables.
• B) determined by the model itself.
• C) determined outside the model.
• D) a variable that has no effect on the workings of the model.
• E) closely linked to a closed economy.

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Definitions:

Ordinary General Annuity

A series of equal payments made at regular intervals over a specified period of time, with the payment intervals occurring at the end of each period.

Future Value

The value of an investment at a specified date in the future, considering various factors like interest rates and compounding periods.

Conditional Sale Contract

A contract for the sale of goods where the payment of the price, or part of it, is deferred and the full ownership of the goods does not transfer until certain conditions, typically the full payment, are met.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.