Provide an Appropriate Response

question 120

Multiple Choice

Provide an appropriate response.
-Classify the statement as an example of classical probability, empirical probability, or subjective probability. The probability that it will rain tomorrow is 63%.

• A)subjective probability
• B)classical probability
• C)empirical probability

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Definitions:

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the basic level of consumption that does not vary with disposable income.

Disposable Income

Monetary provision for households to engage in saving and spending after the imposition of income taxes.

Induced Consumption

Refers to the portion of consumer spending that changes in response to changes in income levels, typically increasing as disposable income rises.

Dissaving

The action of spending more money than received as income, typically by drawing down savings or borrowing.