Given the Relationship Between the Two Variables, the Following Is

Multiple Choice

Given the relationship between the two variables, the following is most likely to be exogenous:

A) the inflation rate and the short term interest rate: short-term interest rate is exogenous
B) U.S. rate of inflation and increases in oil prices: oil prices are exgoneous
C) Australian exports and U.S. aggregate income: U.S. aggregate income is exogenous
D) change in inflation, lagged changes of inflation, and lags of unemployment: lags of unemployment are exogenous