Which of the following makes the multiplier larger?
A) an increase in the marginal propensity to import
B) an increase in the tax rate
C) an increase in the marginal propensity to consume
D) an increase in the marginal propensity to save
Correct Answer:
Verified
Q238: When autonomous expenditure increases, equilibrium aggregate expenditure
A)
Q239: Q240: The multiplier shows that as _ changes, Q241: The multiplier is greater than 1 because Q242: If the multiplier is 6 and exports Q244: An increase in the size of the Q245: In an economy with no income taxes Q246: If there are no taxes or imports Q247: If there are no taxes or imports Q248: The multiplier is larger if the
A) marginal
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