Which Statement Is True

question 178

Multiple Choice

Which statement is true?

• A)At high levels of disposable income,induced consumption is zero.
• B)At low levels of disposable income,induced consumption will be greater than autonomous consumption.
• C)Autonomous consumption will generally equal induced consumption.
• D)None of these statements is true.

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Definitions:

Critical Value

The boundary value from a statistical distribution where, if the observed test statistic is beyond this point, the null hypothesis is rejected.

Null Hypothesis

A default statement suggesting that there is no statistical significance between the specified datasets, or no effect of a certain variable.

T-statistic

A type of statistic used in hypothesis testing, calculated as the difference between an observed sample mean and a hypothesized population mean, divided by the standard error of the mean.

Level of Significance

The level of significance is a threshold set by the researcher to determine the cutoff at which the null hypothesis can be rejected, commonly represented by alpha (α).