In a Simple Macro Model with Demand-Determined Output,the Simple Multiplier

question 74

Multiple Choice

In a simple macro model with demand-determined output,the simple multiplier is equal to 1/(1-z) ,where z equals the

• A)average propensity to spend.
• B)average propensity not to spend.
• C)level of autonomous expenditure.
• D)marginal propensity to spend.
• E)marginal propensity not to spend.

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Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Model

A simplified representation of a system or phenomenon that describes its structure or function, often used in simulations.

Studentized Residuals

Residuals divided by an estimate of their standard deviation, used for identifying outliers in regression analysis.

R-Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.