What type of economic variable is not influenced by other economic factors?

Prepare for the DSST Money and Banking Exam. Review key concepts with multiple-choice questions, and flashcards. Understand money and banking fundamentals to excel in your exam!

The term that best describes a type of economic variable that is not influenced by other economic factors is the exogenous variable. Exogenous variables are those that originate from outside a model or system and are not affected by the other variables within that system. In economic contexts, they can represent external influences such as policy changes, natural disasters, or technological innovations.

In contrast, independent variables typically serve as predictors or causes within a model, and their effects can be gauged in relation to dependent variables. Dependent variables are, by definition, influenced by independent variables, making them reactive to changes. Controlled variables are those that are kept constant in experiments to eliminate their influence on the outcome being measured. This further emphasizes that exogenous variables are conceptually distinctive because they are determined by factors outside the model, reinforcing their independence from the internal dynamics of the economic system being analyzed.

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