The Marginal Propensity to Consume Is

question 19

Multiple Choice

The marginal propensity to consume is:

• A)expected to be between zero and one.
• B)equal to disposable income divided by consumption.
• C)the amount by which consumption changes when wealth increases by one dollar.
• D)normally assumed to increase as taxes increase.

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Definitions:

Sample Sizes

The number of observations or units chosen from a larger population for the purpose of statistical analysis.

Weighted Average

An average resulting from the multiplication of each component by a factor reflecting its importance.

Z-score

A numerical metric indicating how a particular value compares to the average of a dataset, expressed by the number of standard deviations it lies from the mean.

P-value

The likelihood of encountering experimental results that are at least as significant as the actually observed results, given the null hypothesis is assumed to be accurate.