Given the Equation of a Regression Line Is Y =

question 41

Multiple Choice

Given the equation of a regression line is y = 0.00014x + 2.53, determine whether there is a positive linear correlation or a negative linear correlation.

• A)positive linear correlation
• B)negative linear correlation

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Definitions:

MPS

The marginal propensity to save, which is the proportion of an additional unit of income that is saved rather than spent.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls.

Trillion

Trillion is a numerical value represented as 1,000,000,000,000 (10^12), commonly used to quantify large figures such as government budgets, economics, and astronomy.

Induced Consumption

Spending by consumers that varies with income, meaning as income increases, consumption also increases, and vice versa.