(Advanced Analysis) If the Equation for the Consumption Schedule Is

question 152

Multiple Choice

(Advanced analysis) If the equation for the consumption schedule is C = 20 + 0.8Y, where C is consumption and Y is disposable income, then the average propensity to consume is 1 when
Disposable income is

• A) $80.
• B) $100.
• C) $120.
• D) $160.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Standard Error

The standard deviation of the sampling distribution of a statistic, typically the mean, indicating the variability of an estimate.

Mean

The mean is the average of a set of numbers, calculated by adding them all together and then dividing by the count of those numbers.

Z-statistic

A statistical metric that measures the number of standard deviations a data point is from the mean, used in hypothesis testing.