The multiplier:
A)varies directly with the slope of the investment-demand schedule.
B)is unrelated to the slope of the saving schedule.
C)will be greater, the smaller the slope of the saving schedule.
D)will be greater, the steeper the slope of the saving schedule.

Question

Quizplus · Accepted Answer

The multiplier is inversely related to the marginal propensity to save, which is represented by the slope of the saving schedule. A smaller slope indicates a lower marginal propensity to save, leading to a larger multiplier.

The Multiplier