An Increase in the Marginal Propensity to Consume (MPC)leads to a Decrease

question 113

True/False

An increase in the marginal propensity to consume (MPC)leads to a decrease in the spending multiplier.

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Definitions:

NCE

Stands for the National Counselor Examination, a comprehensive assessment for those seeking counseling certification.

Norm-Referenced

A type of test that compares an individual's performance to a statistical norm or average performance of a defined group.

Standard Error of Measurement

The range of scores where we would expect a person’s score to fall if he or she took the instrument over and over again—in other words, where a “true” score might lie. It is calculated by taking the square root of 1 minus the reliability and multiplying that number by the standard deviation of the desired score.

Median

A measure of central tendency that is the middle score, or the score for which 50% of scores fall above and 50% fall below. In a skewed curve or skewed distribution of test scores, the median is generally the most accurate measure of central tendency since it is not affected by unusually high or low scores.