An increase in the marginal propensity to consume (MPC) leads to a increase in the spending multiplier.
Correct Answer:
Verified
Q191: If the marginal propensity to consume (MPC)
Q192: Contractionary fiscal policy is designed to combat
Q193: Following Keynesian economics, and assuming a marginal
Q194: Automatic stabilizers are government programs that tend
Q195: Supply-side fiscal policies were advocated by the
Q197: The presence of the automatic stabilizers means
Q198: The tax multiplier is greater than the
Q199: Supply-side economic policies are designed to shift
Q200: Automatic stabilizers combine changes in discretionary fiscal
Q201: The Laffer curve is based on the
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