The government spending multiplier is as higher as:
A)higher is the government spending
B)higher is the mpc
C)lower is the mpc
D)lower is the tax revenue

Question

Quizplus · Accepted Answer

The government spending multiplier is higher when the marginal propensity to consume (mpc) is higher because a higher mpc means that individuals are more likely to spend additional income, leading to a greater impact of government spending on the overall economy.

The Government Spending Multiplier Is as Higher As