Which of the Following Is True Concerning the Relationship Between

question 111

Multiple Choice

Which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function?

• A)the larger the MPC,the higher the level of autonomous consumption
• B)the larger the MPC,the steeper the consumption function
• C)the larger the MPC,the larger the MPS
• D)The smaller the MPC,the steeper the consumption function
• E)The larger the MPC,the larger the level of autonomous consumption

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Definitions:

Population Parameter

A Population Parameter is a value that represents a characteristic of an entire population, such as its mean or standard deviation.

Sample Statistic

A numerical measure calculated from a set of data extracted from a larger population, used to estimate population parameters.

Population Parameter

A numerical value that represents a characteristic of a population, such as the population mean or variance.

Expected Value

The mean of all possible values for a random variable, weighted by their respective probabilities.