The Average Propensity to Consume Is Measured By

question 5

Multiple Choice

The average propensity to consume is measured by:

• A) Consumption / income
• B) Consumption / sales
• C) Change in consumption / change in income
• D) Change in consumption / total income

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Construct Validity

Evidence that a test measures a specific concept or trait. Construct validity includes an analysis of a test through one or more of the following methods: experimental design, factor analysis, convergence with other instruments, and/or discrimination with other measures.

Factor Analysis Validity

A statistical method used to examine whether a set of survey or test items correlates with underlying constructs, thereby validating the measure's theoretical assumptions.