If We Observe That Every Increase in Income of $120

question 165

Multiple Choice

If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is

• A)2/3.
• B)3/2.
• C)2
• D)3
• E)8

---

Definitions:

F-ratio

A statistical measure used in the analysis of variance (ANOVA) to compare the variability between groups to variability within groups.

Null Hypothesis

A default hypothesis that there is no significant difference or association, used as a starting assumption in statistical testing.

F-ratio

The calculated statistic in ANOVA tests, determining whether there are any statistically significant differences between the means of three or more unrelated groups.

Income Levels

The categorized or continuous ranges of income received by individuals, households, or families, often used in socioeconomic and demographic analysis.