If the Marginal Propensity to Consume Is 4/5, Then a Decrease

question 139

True/False

If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion.

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Height

The measurement of an individual from the base to the top of their body when standing upright.

Diet

The sum of food and beverages consumed by an individual or group, often considered in the context of variety, quality, and quantity for health and nutrition.

Correlational Research

A type of non-experimental research method that measures the relationship between two or more variables, without implying causation.