One Implication of a Straight-Line Aggregate Expenditure Curve Is That

question 182

Multiple Choice

One implication of a straight-line aggregate expenditure curve is that:

• A) the marginal propensity to consume is constant.
• B) the average propensity to consume is constant.
• C) the average propensity to save is constant.
• D) All of the answers are correct.

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Definitions:

Null Hypothesis

It is a statistical hypothesis that asserts there is no significant effect or difference, serving as a default assumption until evidence suggests otherwise.

Normally Distributed

A symmetric probability distribution centered around the mean, illustrating that occurrences are more frequent near the mean and less frequent as they move away from it.

Critical Value

A threshold value used in hypothesis testing, which a test statistic must exceed to reject the null hypothesis.

Chi-squared Test

A chi-squared test is a statistical method used to assess the differences between observed and expected frequencies in one or more categories.