To Help Explain or Predict the Response Variable in Every

question 77

True/False

To help explain or predict the response variable in every regression study,we use one or more explanatory variables.These variables are also called response variables or independent variables.

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Definitions:

Disposable Income

The amount of income left for spending or saving after taxes and other deductions have been subtracted.

Saving

The act of setting aside a portion of one’s income for future use, instead of spending it immediately.

Disposable Income

After subtracting income taxes, disposable income is the money remaining for individuals or households to spend or save.

MPC

The marginal propensity to consume, indicating the proportion of an additional unit of income that is spent on consumption.