An increase in the marginal propensity to consume (MPC)leads to a decrease in the spending multiplier.
Correct Answer:
Verified
Q64: When there is a shift in autonomous
Q72: Answer the following questions:
a. If aggregate
Q182: The tax multiplier equals 1 − spending
Q187: The size of the spending multiplier depends
Q188: The size of the spending multiplier depends
Q191: If the marginal propensity to consume (MPC)
Q193: The spending multiplier does not apply to
Q194: The spending multiplier also applies to investment
Q197: According to the Keynesian model, the government
Q199: If the marginal propensity to consume 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