Suppose There Is a Decrease in the Marginal Propensity to Spend

question 83

Multiple Choice

Suppose there is a decrease in the marginal propensity to spend out of national income.The result will be

• A)a movement to the right along the AE curve.
• B)a movement to the left along the AE curve.
• C)an increase in the slope of the AE curve,which rotates it upward.
• D)a decrease in the slope of the AE curve,which rotates it downward.
• E)a parallel downward shift in the AE curve.

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Definitions:

Critical F Value

A statistic used in the analysis of variance (ANOVA) tests, indicating the value beyond which data can be considered statistically significant.

Sum Of Squares

A statistical measure that quantifies the dispersion or variance of a set of numbers, by summing the squared differences from the mean.

Observations

The act of noticing and recording something, typically as part of a scientific study or research project.

Test Statistic

A value derived from sample data during a hypothesis test, used to determine whether to reject the null hypothesis.