A Measure of the Average Value of a Random Variable

question 73

Multiple Choice

A measure of the average value of a random variable is called a(n)

• A) variance.
• B) standard deviation.
• C) expected value.
• D) coefficient of variation.

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Definitions:

Multiplier Effect

An economic phenomenon where an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

Aggregate Demand

The aggregate market demand for goods and services in an economic environment, valued at a specific price level within a certain timeframe.

MPC

Marginal Propensity to Consume, which is the proportion of any additional income that a consumer spends on goods and services.

Multiplier

An economic factor that quantifies the additional effects of a change in spending on the total economic activity.