The value of the multiplier will be larger,the
A)Smaller the value of the marginal propensity to save.
B)Smaller the APC.
C)Larger the value of the mps.
D)Smaller the APS.

Name: The value of the multiplier will be larger,the A)Smaller the value of the marginal propensity to save. B)Smaller the APC. C)Larger the value of the mps. D)Smaller the APS.
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Question

Quizplus · Accepted Answer

The multiplier is inversely related to the marginal propensity to save (mps); therefore, a smaller mps leads to a larger multiplier.

The Value of the Multiplier Will Be Larger,the