TABLE 14-3 an Economist Is Interested to See How Consumption for an for an Economy

question 312

Multiple Choice

TABLE 14-3
An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) . The Microsoft Excel output of this regression is partially reproduced below.
-Referring to Table 14-3, to test for the significance of the coefficient on gross domestic product, the p-value is

• A) 0.0001.
• B) 0.8330.
• C) 0.8837.
• D) 0.9999.

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Definitions:

Initial Investment

Initial investment refers to the amount of money initially invested in a project, asset, or company, which can influence subsequent cash flows and profitability.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs structure of a company.

Depreciation Expense

Strategically spreading out the cost of a concrete asset over the course of its serviceable life.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.