If the Saving Rate in an Economy Is 30 Percent

question 31

Multiple Choice

If the saving rate in an economy is 30 percent and the GDP of the economy is $1,000,then the level of investment in the economy will be ________.

• A) $150
• B) $300
• C) $330
• D) $600

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Definitions:

Coefficient Of Determination

The coefficient of determination, denoted as R², measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s), indicating the strength of the relationship.

Regression Line

A statistical line of best fit that describes the relationship between one dependent variable and one or more independent variables.

Linear Regression Model

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, assuming a linear relationship.

Slope

Refers to the measure of the steepness, incline, or grade of a line, indicating the rate at which the dependent variable changes over the independent variable.