If Consumption Is Defined as C = 2,000 + 0

question 14

True/False

If consumption is defined as C = 2,000 + 0.8Y,then the marginal propensity to save is 0.8.

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Definitions:

Predictive Validity

The extent to which a test accurately forecasts or predicts the future performance or behavior of individuals on related tasks.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, indicating the utility of the test for predicting performance or behavior.

Discriminant Validity

A method of demonstrating construct validity by correlating a test with other dissimilar instruments to ensure lack of a relationship.

Intelligence Test

Individual tests that assess a broad range of cognitive capabilities that generally results in an “IQ” score. Often used to identify mental retardation, giftedness, learning disabilities, and general cognitive functioning. It is a type of aptitude test.