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Which of the following is an exogenous variable in our model of the goods market? A) consumption (C) B) saving (5) C) disposable income (YD) D) government spending (G) E) none of the above
Which of the following is an exogenous variable in our model of the goods market? A) consumption (C) B) saving (5) C) disposable income (YD) D) government spending (G) E) none of the above
Expert Solution
Answer
D )
Explanation
An exogenous variable is a variable that is not affected by other variables in the system. Government spending is an exogenous variable in our model of the goods market.
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