Choose the Statement That Best Describes How Endogenous Variables Differ

Multiple Choice

Choose the statement that best describes how endogenous variables differ from exogenous variables.

A) An endogenous variable is a function of the exogenous variable, and both are stock variables.
B) An endogenous variable is explained outside the theory and influences an exogenous variable while an exogenous variable is explained within the theory.
C) An endogenous variable is explained within the theory, while an exogenous variable influences the endogenous variables but is determined outside the theory.
D) An exogenous variable is a function of the endogenous variable, and both are flow variables.
E) An endogenous variable is a flow, while an exogenous variable is a stock.