-Refer to the Above Figure

question 418

Multiple Choice

-Refer to the above figure. Line ACE is called

• A) the saving function.
• B) the savings function.
• C) the 45-degree line.
• D) the consumption function.

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Definitions:

Coefficient of Correlation

A statistical measure that calculates the degree to which two variables move in relation to each other.

Best-fit Linear Equation

A mathematical formula that describes a straight line which closely approximates the relationship between two variables in a set of data.

Coefficient of Correlation

A measure that indicates the degree to which two variables are linearly related.

Covariance

A measure that indicates the extent to which two variables change together, but does not specify the nature of the relationship.