Assume the Following

question 139

Multiple Choice

Assume the following. • The MPC has a value of 0.8.
• The relationship between the interest rate, r, and investment, I, is given by the equation, , where b is a positive constant.
• Government purchases, G, are increased by $1,000.
In which of the following cases would there be no crowding out?

• A) b=0
• B) b=0.2
• C) b=0.8
• D) b= 1

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Definitions:

Simple Random Samples

A subset of individuals chosen from a larger set such that every individual has an equal chance of being selected.

Random Samples

Samples chosen from a larger set or population where each individual or event has an equal chance of being selected.

Population

The total set of observations or data that can be collected or referenced in a statistical analysis.

Normal Probability Distribution

A symmetric, bell-shaped distribution that is characterized by its mean and standard deviation, representing the distribution of many types of data.