1. Your two variables are consumption and income. Which is the dependent variable and which is the independent variable?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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ECO250
Unit 11 In-Class Exercise
In macroeconomics, the marginal propensity to consume (MPC) is the proportion of extra
income that is spent on consumption, and it is important for determining the effects of
monetary and fiscal policy. In this exercise, you will estimate the MPC with the slope from
regression analysis.
1. Your two variables are consumption and income. Which is the dependent variable and
which is the independent variable?
Transcribed Image Text:ECO250_Unit11. O Search A Ayannia Tripp AT Design Layout References Mailings Review View Help Calibri (Body) -14 A A Aa A E E-E- EE AL T OFind - G Replace AaBbCcD AaBbCcD AABBC AABBCCC AaB IU ab x, x A e A 1 Normal 1 No Spac. Heading 1 Heading 2 Title A Select Font Paragraph Styles Editing ECO250 Unit 11 In-Class Exercise In macroeconomics, the marginal propensity to consume (MPC) is the proportion of extra income that is spent on consumption, and it is important for determining the effects of monetary and fiscal policy. In this exercise, you will estimate the MPC with the slope from regression analysis. 1. Your two variables are consumption and income. Which is the dependent variable and which is the independent variable?
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