Suppose Economists Observe That an Increase in Government Purchases of $10

question 262

Multiple Choice

Suppose economists observe that an increase in government purchases of $10 billion raises aggregate expenditures by $30 billion. These economists would estimate that the marginal propensity to save is

• A) 0.33.
• B) 0.5.
• C) 0.67.
• D) 20.

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Standard Deviation

The standard deviation is a measure of the amount of variation or dispersion of a set of values.

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A distribution where the values of the dataset are spread out or scattered widely.

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Standard scores indicating how many standard deviations an element is from the mean.