If Planned Aggregate Expenditures Are $300 Billion, Consumption Is $180

question 29

Multiple Choice

If planned aggregate expenditures are $300 billion, consumption is $180 billion, investment is $75 billion, government spending is $45 billion, there is a

• A) trade surplus of $300 billion.
• B) trade surplus of $600 billion.
• C) trade deficit of $300 billion.
• D) trade balance.

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Definitions:

Multiple Regression Analysis

A statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.

Multicollinearity

A condition in regression analysis where two or more predictor variables are highly correlated, making it difficult to isolate the impact of each variable.

Significance

The degree to which a result from data collection or analysis indicates a meaningful pattern that can lead to a conclusion.

Critical F Value

A statistic used in the analysis of variance (ANOVA) tests, indicating the value beyond which data can be considered statistically significant.