Given the Relationship Between the Two Variables, the Following Is

question 19

Multiple Choice

Given the relationship between the two variables, the following is most likely to be exogenous:

• A)the inflation rate and the short term interest rate: short-term interest rate is exogenous
• B)U.S. rate of inflation and increases in oil prices: oil prices are exgoneous
• C)Australian exports and U.S. aggregate income: U.S. aggregate income is exogenous
• D)change in inflation, lagged changes of inflation, and lags of unemployment: lags of unemployment are exogenous

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Definitions:

Variable Costs

Expenses that change in proportion to the amount of production or business operations.

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.