The Slope of the Consumption Function Is Equal to

question 86

Multiple Choice

The slope of the consumption function is equal to

• A)the nominal interest rate.
• B)the real interest rate.
• C)the marginal propensity to consume.
• D)the relative price of consumption.
• E)the marginal propensity to save.

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Definitions:

Odds Ratio

A statistic that quantifies the strength of the association between two events, comparing the odds of an event occurring in one group to the odds of it occurring in another group.

Probability

A mathematical measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Dependent Variable

A variable in an experiment or study that is dependent on other variables, typically the outcome or effect being measured.

Indicator Variable

A binary variable that takes the value of 1 if a certain condition is true and 0 if it is false, used in statistical analysis.