The Smith Family's Disposable Income Rose from $40 000 Per

question 100

Multiple Choice

The Smith family's disposable income rose from $40 000 per year to $42 000 and their desired consumption expenditure rose from $38 000 to $39 600.It can be concluded that their

• A)average propensity to consume is 0.8.
• B)average propensity to save is 0.8.
• C)marginal propensity to consume is $800.
• D)marginal propensity to consume is 0.8.
• E)marginal propensity to save is 0.8.

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Definitions:

Independent Samples

Two or more groups of observations that are collected such that the results from one group do not influence the results from another group.

Multiple Times

Refers to conducting or repeating a process or measurement on several occasions to ensure accuracy or reliability.

T Value

A value derived from a T-test, used to determine the significance of differences between two sample means.

Independent Samples

Two or more groups of observations that are collected from separate populations and are not related or connected in any way.