-The Figure Above Shows a Nation's Consumption Function

question 83

Multiple Choice

-The figure above shows a nation's consumption function.The amount of autonomous consumption expenditure is

• A) $0.
• B) $1 trillion.
• C) $2 trillion.
• D) $3 trillion.
• E) more than $3 trillion.

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Definitions:

Regression Analysis

A statistical method for investigating the relationship between a dependent variable and one or more independent variables.

Durbin-Watson Statistic

A measure used in statistics to find out whether autocorrelation at lag one occurs in the residuals after performing a regression analysis.

First-Order Autocorrelation

The correlation of a signal with a delayed version of itself, particularly measuring the correlation between values that are one time period apart.

First-Order Autocorrelation

The correlation between values in a time series and the values immediately preceding them.