In a Multiple Regression Model Y' = -11 + 5x₁

question 61

Multiple Choice

In a multiple regression model y' = -11 + 5x₁ + 21x₂ + 11x₃ + 3x₄, if the x₁ value changes by 2, then the predicted value for y will change by

• A) 10
• B) 42
• C) -1
• D) 29

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Definitions:

MPC

Marginal Propensity to Consume, a measure that describes the proportion of an increase in income that gets spent on consumption rather than being saved.

Federal Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year.

National Debt

The total amount of money that a country's government has borrowed.

Taxes

Mandatory economic impositions or alternative kinds of charges placed on taxpayers by governmental bodies to finance state expenditure and diverse public costs.