The Fraction of an Increase in Income That Is Saved

question 117

Multiple Choice

The fraction of an increase in income that is saved is referred to as the _____.

• A)marginal propensity to save
• B)average propensity to save
• C)marginal propensity to consume
• D)average propensity to consume
• E)saving-consumption ratio

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Definitions:

Sign Test

A non-parametric statistical test used to assess the difference between matched pairs of samples when the specific data measurement scale does not meet the requirements for parametric testing.

Binomial Tables

Pre-calculated tables used to find the probability of observing a certain number of successes in a fixed number of binary experiments.

Large-sample Z Statistic

A statistical measure used when the sample size is large, typically applied in hypothesis testing to determine if there is a significant difference between sample statistics and population parameters.

Two-sample T-test

A statistical method used to test if there is a significant difference between the means of two groups.