If the MPC increases from 0.75 to 0.80 and there are no income taxes or imports,
A) the multiplier becomes smaller.
B) the multiplier becomes larger.
C) the slope of the consumption function becomes smaller.
D) the slope of the savings function becomes larger.
Correct Answer:
Verified
Q111: Suppose that, in 2012, firms discover that
Q112: Because the short-run aggregate expenditure model assumes
Q113: If the multiplier is 4 and there
Q115: At equilibrium expenditure,
A)aggregate planned expenditure equals real
Q117: A movement along the consumption function is
Q118: After an increase in autonomous spending, in
Q120: When disposable income increases from $7 billion
Q121: Induced consumption is equal to
A)saving when consumption
Q204: The multiplier effect exists because a change
Q304: 
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