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Created page with 'In economics, '''exogenous''' effects are those whose causes cannot be predicted or derived from economic factors at work within the status quo. For example, the [[Oil Embarg...'
In [[economics]], '''exogenous''' effects are those whose causes cannot be predicted or derived from economic factors at work within the status quo. For example, the [[Oil Embargo of 1973]] that led to massive supply disruptions in the United States and that resulted in severe [[cost-push inflation]] or "[[stagflation]]" was caused by an act of the multinational [[OPEC]] cartel - an unforseeable economic vicissitude.
A development that results from an existing factor, such as decreased [[investment]] spending following a rise in the [[Federal Reserve]]'s [[discount rate]], would be classified as [[endogenous]], not exogenous, due to its having logically arisen from the status quo.
[[Category:Economics]]
A development that results from an existing factor, such as decreased [[investment]] spending following a rise in the [[Federal Reserve]]'s [[discount rate]], would be classified as [[endogenous]], not exogenous, due to its having logically arisen from the status quo.
[[Category:Economics]]