Which of the following makes the multiplier larger?
A) An increase in the marginal propensity to import
B) An increase in the marginal propensity to consume
C) An increase in the marginal propensity to save
D) An increase in the tax rate
Correct Answer:
Verified
Q40: When the economy is at full employment
Q41: Disposable income is equal to
A)aggregate income minus
Q42: The marginal propensity to import reflects the
Q43: The slope of the AE curve is
Q44: An increase in _ shifts the AE
Q46: Q47: Australia's consumption function Q48: The size of the multiplier Q49: Q50: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)has a positive slope.
B)has shifted
A)is unaffected by
