Suppose Y = 400 and the Government's Net Tax Rate

question 101

Multiple Choice

Suppose Y = 400 and the government's net tax rate is 10%.If we are told that the government has a budget surplus,then government purchases must be

• A)greater than 30.
• B)less than 30.
• C)greater than 40.
• D)less than 40.
• E)Not enough information to know.

---

Definitions:

Variation

The measure of the spread or distribution of a set of data points.

Standard Error Of Estimate

A measure that indicates the accuracy of predictions made in a regression analysis; it reflects the typical distance between observed and predicted values.

Coefficient Of Correlation

An analytical measure that identifies the strength and directionality of a linear relationship involving two factors.

Coefficient Of Determination

The coefficient of determination, often denoted as R^2, is a statistic used in the context of statistical models whose main purpose is to provide a measure of how well observed outcomes are replicated by the model, based on the proportion of total variation of outcomes explained by the model.