The Sum of the Marginal Propensity to Save and the Marginal

question 109

Multiple Choice

The sum of the marginal propensity to save and the marginal propensity to consume

• A)always equals 1.
• B)sometimes equals 1.
• C)always equals 0.
• D)never equals 1.
• E)is greater than zero but less than 1.

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Definitions:

Value

The importance, worth, or usefulness of something or a numerical quantity assigned to a variable.

Type II Error

The error made in statistical testing when a false null hypothesis is not rejected.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations or phenomena, used as a starting point for statistical testing.

Incorrect Decision

A decision based on data analysis or hypothesis testing that incorrectly accepts the null hypothesis or wrongly rejects it, leading to a Type I or Type II error.