Exogenous and endogenous variables in the IS-LM model
Channel: econom
Date: 24/11/2015

Exogenous variables are those variables that are independent from income (Y) and the interest rate (i). These are variables such as autonomous consumption, autonomous investment, the marginal propensity to consume, the nominal money supply, government spending and in this model taxes.
Endogenous variables are influenced by the level of income and the interest rate. These are variables such as induced consumption, investment and demand for money.