Table 91 What Is the Marginal Propensity to Consume in Table 9

question 16

Multiple Choice

Table 9.1 $$\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \text { \$0 } & \$ 50 \\\hline 200 & 210 \\\hline\end{array}$$ What is the marginal propensity to consume in Table 9.1?

• A)0.15.
• B)0.80.
• C)0.85.
• D)0.90.

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or changed to assess their effects on dependent variables.

Dependent Variables

Variables in an experimental setup that respond or change due to manipulations in the independent variables.

Best-subsets Regression

A statistical method in regression analysis that evaluates all possible combinations of variables to identify the model that best fits the data.

Bonferroni Criterion

A statistical adjustment method used to reduce the chances of obtaining false-positive results (Type I errors) when multiple hypothesis tests are conducted.