What Must the Value of the Average Propensity to Save

question 76

Essay

What must the value of the average propensity to save (APS)be if the average propensity to consume (APC)is greater than 1? Why?

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted as alpha and used as a threshold for determining statistical significance.

Null Hypotheses

A statistical hypothesis that assumes no significant difference or effect exists within a set of given observations.

Type I Error

The error that occurs when a null hypothesis is incorrectly rejected when it is actually true, often referred to as a "false positive."

Type II Error

The statistical mistake of failing to reject a false null hypothesis. It's also known as the error of accepting a false negative result.