Here Is a Consumption Function: C = C₀ + MPC(Y_d)

question 128

Multiple Choice

Here is a consumption function: C = C₀ + MPC(Y_d) .If MPC is 0.80,then we know that

• A) as Yd rises by $1, Co rises by $0.80.
• B) as Yd rises by $1, C rises by $0.80.
• C) Y_d rises by $0.80.
• D) as C₀ rises by $0.80, Y_d rises by $1.

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Definitions:

Measures of Variability

Statistical metrics that describe the spread or dispersion within a data set, including range, variance, and standard deviation.

Coefficient of Variation

A normalized measure of the dispersion of a probability distribution or frequency distribution, often used to compare the degree of variation from one data series to another.

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much variation there is from the average.

Standard Deviations

An indicator of how widely values in a dataset are spread out from the average, showing the degree to which these numbers vary from their mean.