The Effectiveness of Any Stimulus Program Depends On

question 80

Multiple Choice

The effectiveness of any stimulus program depends on:

• A)the nature of the tax only
• B)the size of the tax and spending multipliers
• C)the nature of the tax and tax multipliers
• D)the income group targeted
• E)the marginal propensity to consume only

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Definitions:

Test Statistic

A value calculated from sample data used to make a decision on whether to reject the null hypothesis.

Null Hypothesis

A default hypothesis that there is no significant effect or difference, usually tested against an alternative hypothesis in statistical analysis.

Indicator Variable

A variable used in statistical modeling and analysis that assigns a value of 0 or 1 to note the absence or presence of a particular condition or attribute.

Logistic Regression

A statistical analysis method used for prediction of a binary outcome, based on one or more predictor variables.