(Advanced Analysis) Assume the Consumption Schedule for a Private Closed

question 47

Multiple Choice

(Advanced analysis) Assume the consumption schedule for a private closed economy is C = 40 + 0.75Y, where C is consumption and Y is gross domestic product. The multiplier for this economy is

• A) 3.
• B) 4.
• C) 5.
• D) 10.

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Definitions:

Population Means

The average values of a particular characteristic for all individuals or elements within a defined population.

Confidence Interval

A spectrum of values calculated from sample data, anticipated to surround the value of an unexpressed population parameter.

Population Means

The average value of a characteristic in a population.

90% Confidence

A statistical term indicating that there is a 90 percent chance that the true parameter is within the calculated confidence interval.