Consider the Following Equation for Household Consumption Expenditure: Consmptn=

Multiple Choice

Consider the following equation for household consumption expenditure: Consmptn= ₀+ ₁Inc + ₂Consmptn_-1+ u
Where 'Consmptn' measures the monthly consumption expenditure of a household, 'Inc' measures household income and 'Consmptn_-1' is the consumption expenditure in the previous month. Consmptn_-1 is a _____ variable.

A) exogenous
B) binary variable
C) lagged dependent
D) proxy variable