Figure 21-3 -Refer to Figure 21-3. Which of the Following Is Consistent

question 74

Multiple Choice

Figure 21-3
-Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?

• A) The government begins running a budget surplus.
• B) An expected recession decreases the profitability of new investment.
• C) An increase in government spending crowds out private expenditures.
• D) Technological change increases the profitability of new investment.

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Definitions:

Standard Deviation

A quantification of how much spread or variability exists within a group of figures.

Simple Linear Regression

Simple linear regression is a method for predicting a quantitative outcome using a single explanatory variable, based on the linear relationship between them.

Least Squares

A method in statistics for approximating the solution of overdetermined systems, by minimizing the differences between the observed and predicted values.

Simple Linear Regression

A statistical method used to model the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.