When Investment Remains the Same at Each Level of GDP

question 25

Multiple Choice

When investment remains the same at each level of GDP in a private closed economy, the slope of the aggregate expenditures schedule

• A) exceeds the MPC.
• B) is less than the MPC.
• C) equals the MPS.
• D) equals the MPC.

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Definitions:

Population Parameter

A numerical characteristic or measure that describes an aspect of a population, such as its mean or variance.

Sampling Distribution

The distribution of probabilities for a certain statistic, obtained from a random sample.

Sample Statistic

A numerical measure that describes an aspect of a sample of a population.

Probability Samples

Samples chosen in such a way that every member of the population has a known, non-zero chance of being included.