The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are real factors while exogenous variables are nominal factors.
b. Endogenous variables are fixed by definition.
c. Exogenous variables are fixed by definition.
d. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Endogenous variables are therefore treated as shocks to the Three-Sector-Model.
e. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model.
Question 2 - Which group is always harmed by inflation?
a. Borrowers
b. Lenders
c. Businesses
d. Variable income earners (e.g. workers)
e. Fixed income earners with no supplementary benefits and few assets.
Question 3 - The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are fixed by definition.
b. Exogenous variables are fixed by definition.
c. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Endogenous variables are therefore treated as shocks to the Three-Sector-Model.
d. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model.
e. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets.
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