If Net Exports Increase by 100 and the Mpc Is

question 81

Multiple Choice

If net exports increase by 100 and the mpc is 0.75,equilibrium aggregate output increases by

• A)100.
• B)250.
• C)400.
• D)750.

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Definitions:

Null Hypothesis

A statement or hypothesis set up to be nullified or refuted in order to support an alternative hypothesis in statistical testing.

Significance Tests

Statistical tests used to determine whether the observed data deviates significantly from the null hypothesis or not.

Significance Test

A statistical test used to determine if there is enough evidence in a sample of data to infer that a condition holds true for the entire population.

Random Sample

A sampling method in which each member of a population has an equal chance of being included, ensuring that the sample represents the entire population.