The Average Propensity to Consume Is The

question 11

Multiple Choice

The average propensity to consume is the:

• A) ratio of consumption to income.
• B) amount consumed out of an additional dollar of income.
• C) amount available for consumption after precautionary saving.
• D) ratio of consumption to wealth.

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Definitions:

Operational Definition

A statement of the procedures or ways in which a research concept is measured and turned into a variable.

Inferential Statistics

A branch of statistics that allows us to infer trends about a population based on samples from that population.

Hypothesis

A proposed explanation for a phenomenon, intended to be tested through experimentation or observation.

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.