If a Change in Variable X Causes a Change in Variable

question 21

Multiple Choice

If a change in variable x causes a change in variable y, variable x is called the _____.

• A)dependent variable
• B)explained variable
• C)explanatory variable
• D)response variable

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Definitions:

APC (Average Propensity to Consume)

The fraction of income that households plan to spend on goods and services; it is the ratio of total consumption to total disposable income.

Disposable Income

Refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

APS (Average Propensity to Save)

The fraction of total income that is saved by the average household.

Disposable Income

The amount of money an individual or household has to spend or save after income taxes have been deducted.