The Consumption Function Has a Positive Slope While the Savings

question 78

True/False

The consumption function has a positive slope while the savings function has a negative slope.

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Definitions:

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points.

Regression Equation

A mathematical formula used to describe the relationship between a dependent variable and one or more independent variables.

Correlation Coefficient

A numerical index that reflects the relationship between two variables, specifically how the value of one variable changes when the value of the other variable changes.

Prediction Error

The difference between observed values and the values predicted by a model, used as a metric to evaluate the accuracy of predictions.