-In the Figure Above, When Disposable Income Equals $10 Trillion

question 80

Multiple Choice

-In the figure above, when disposable income equals $10 trillion,

• A) consumption expenditure is less than disposable income, so consumers are saving.
• B) consumption expenditure is greater than disposable income, so consumers are dissaving.
• C) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving.
• D) consumption expenditure is greater than disposable income, so consumers are saving.
• E) consumption expenditure is less than disposable income, so consumers are dissaving.

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Definitions:

Test Statistics

A standardized value that is calculated from sample data during a hypothesis test and is used to determine whether to reject the null hypothesis.

Distributions

A statistical term describing all the possible values and their associated frequencies for a data set or variable.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected, meaning a true effect is missed.

Chi-Squared Distribution

A probability distribution used in hypothesis testing that is applicable to categorical data and tests of independence.