Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be? b. Now suppose the economists allow for crowding out. Would their new estimate of the MPC be larger or smaller than their initial one?
QBA The ChiSquare test is typically used to analyze the relationship between two variables under the following conditions: 1) Both variables are qualitative in nature (that is, measured on a nominal level). 2) The two variables have been measured on the same individuals 3) The observations on each variable are betweensubjects in nature. Nonparametric statistics *Are a class of statistical tests that focus on distributions of scores rather than means and the measures of variability that are central to the parametric tests that we have considered previously. ChiSqure test *Is nonparametric in nature *Is designed to analyze the relationship between two variables using frequency information.