The important act of holding all other variables constant while examining a particular variable is known as a

Business Dec 10, 2020

The important act of holding all other variables constant while examining a particular variable is known as

a. endogeneity.

b. a normative statement.

c. a positive statement.

d. macroeconomics.

e. ceteris paribus.

Expert Solution

The correct option is:

e. ceteris paribus.

Ceteris Paribus is derived from Latin that means "all other things constant". Ceterus Paribus is an important assumption in most of the economic theories and assumptions.

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