In the Consumption Function C = a + C(Y -T),the

question 63

Multiple Choice

In the consumption function C = a + c(Y -T) ,the "marginal propensity to consume" appears as

• A)a.
• B)c.
• C)cY.
• D)-cT.

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Definitions:

Parameter

Numeric characteristic of a population.

Population

The entire aggregation of items or individuals from which samples can be drawn for statistical analysis.

Measure of Variability

A statistic that describes the degree to which scores in a distribution spread out or cluster together, such as range, variance, or standard deviation.

Statistic

A numerical measure that describes a characteristic of a sample derived from a larger population.