If the Marginal Propensity to Consume Is 2/3 and Autonomous

question 59

Multiple Choice

If the marginal propensity to consume is 2/3 and autonomous consumption spending increases by $3 trillion,what is the change in GDP?

• A) $3 trillion
• B) $1 trillion
• C) -$3 trillion
• D) $9 trillion
• E) -$9 trillion

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Definitions:

F Distribution

A probability distribution used in analysis of variance (ANOVA), among other tests; it is used to compare variances across multiple groups.

Probability

A numerical measure of the likelihood that an event will occur.

Value(s)

Represents the magnitude, amount, or number in a given context, or the worth of something.

Test Statistic

A calculated value from sample data that is used in a hypothesis test to determine whether to reject the null hypothesis.