If households in the economy save more of any extra income that they earn, then the multiplier effect will
A) increase.
B) decrease.
C) be unaffected.
D) become less than 1.0.
Correct Answer:
Verified
Q185: If the MPC is 0.8, what change
Q186: Generally speaking, the greater the MPS, the
A)smaller
Q187: The simple multiplier 1/MPS
A)understates the actual multiplier
Q188: In general, the steeper the consumption schedule,
Q189: Which statement about the multiplier is correct?
A)If
Q191: The value of the multiplier is likely
Q192: If, in an economy, a $200 billion
Q193: There are only two things that people
Q194: Art Buchwald's article, "Squaring the Economic Circle,"
Q195: In a closed private economy, income is
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