An example of an exogenous business cycle theory would be _____. a) overinvestment b) inventory c) money d) War

Exogenous business cycle theory indicates that business cycles are determined by factors outside the economy. These can be natural calamities, political events, wars, or global economic shocks.

Now let's analyze each option and determine whether or not it represents an exogenous factor: a) Overinvestment refers to excessive spending on capital assets beyond what is needed for a healthy economy. This is an endogenous factor because it occurs within the economy due to economic actors' decisions. b) Inventory refers to the stock of goods and materials that a business has on hand to sell or use in the production process. Inventory management is an integral part of the economy and involves decisions made by businesses. Therefore, this is an endogenous factor. c) Money refers to the means of exchange used within an economy, including currency or deposits. Changes in the money supply or policy usually result from decisions by the central bank or government. Thus, this is considered an endogenous factor. d) War, which involves armed conflict between nations or groups, can significantly affect a country's economy through the destruction of infrastructure, redirection of resources, and disruptions to trade. War is an external factor and is not determined by the economy's internal processes. This makes it an exogenous factor.

Since an exogenous business cycle theory focuses on external factors, we can select the option that represents such a factor. The correct answer is: d) War