(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:

Sample Mean

The average computed from a sample of data, representing the central tendency of the sample.

Large Sample Sizes

Refers to a substantial amount of data points in a sample, which facilitates more accurate estimates of the population parameter.

Degrees of Freedom

A concept in statistics that describes the number of values in the final calculation of a statistic that are free to vary when estimating parameters of a population.

Pooled Two-sample T Procedure

A statistical method that combines variances from two samples to test for a difference in means when the variances are assumed to be equal.