Figure 21-2 -Refer to Figure 21-2. Which of the Following Is Consistent

question 56

Multiple Choice

Figure 21-2
-Refer to Figure 21-2. Which of the following is consistent with the graph depicted above?

• A) An expected expansion increases the profitability of new investment.
• B) The government runs a budget surplus.
• C) Investment spending is declining due to crowding out.
• D) New government regulations decrease the profitability of new investment.

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Definitions:

Predictive Validity

The extent to which a score or measurement can accurately predict future performance on a related task or outcome.

Aptitude Test

A standardized test designed to measure an individual's potential to develop skills or acquire knowledge.

Criterion Behavior

Specific behaviors that a psychological or educational assessment aims to measure or understand.

Predictive Validity

is the extent to which a score on a scale or test predicts future performance on related tasks.