Suppose the Consumption Equation Is Represented by the Following: C

question 58

Multiple Choice

Suppose the consumption equation is represented by the following: C = 250 + .75YD,then private savings is

• A)-250+0.25YD.
• B)-250+0.75YD.
• C)-1000+0.25YD.
• D)-1000+0.75YD.

---

Definitions:

Multicollinearity

A statistical phenomenon where several independent variables in a model are correlated, impacting the model’s accuracy.

Dependent Variables

Variables in an experiment or model that are expected to change as a result of changes in the independent variables.

Multicollinearity

A situation in multiple regression where one predictor variable in the model can be linearly predicted from the others with a substantial degree of accuracy.

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated.