Explain the difference between endogenous and exogenous variables
What will be an ideal response?
Endogenous variables are determined by the model. Exogenous variables are taken as given and, for example in this model, do not change as income changes.
You might also like to view...
How does the United States differ from the European Union in how it balances the competing claims of equality and efficiency?
What will be an ideal response?
If more European and Japanese firms want to build factories and expand their offshore investments in the United States, the supply of U.S. dollars on foreign exchange markets will increase as a result of this investment activity
Indicate whether the statement is true or false
Banks have responded to new regulations resulting from the Dodd-Frank Act in all of the following ways EXCEPT:
A) raising minimum balances on free checking accounts B) closing branches in low-income neighborhoods C) raising overdraft fees D) increased marketing of securities and financial advice to high-income customers
Government price controls make communication of information between buyers and sellers more effective
a. True b. False Indicate whether the statement is true or false