Caching on External Entities - Odata Caching

I came across below line in External Entities.    Datasets are maintained and updated in the source application. You can integrate or consume these datasets through external entities in your app development, and any changes to the data in the originating app is automatically updated in the consuming apps.   Does it mean data present External Entities are being cached in consuming application.  If cached what is caching mechanism? eager load or lazy load? If Data Size of Extenal entities is bigger will it occupy lot of space in target application?
1 answers

The app will retrieve the external objects directly from the external system. It does not cache this data.