If the MPC increases from 0.75 to 0.80 and there are no income taxes or imports
A) the multiplier becomes larger.
B) the multiplier becomes smaller.
C) the slope of the consumption function becomes smaller.
D) the slope of the savings function becomes larger.
Correct Answer:
Verified
Q252: The larger the slope of the AE
Q253: If there are no income taxes or
Q254: The relationship between the multiplier and the
Q255: If the slope of the AE curve
Q256: If a $75 billion increase in autonomous
Q258: The expenditure multiplier equals
A) APC - APS
Q259: Assume there are no taxes or imports.
Q260: If investment increases by $300 and, in
Q261: The smaller the slope of the AE
Q262: If the multiplier is 4 and there
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