Which of the following would tend to make the multiplier smaller?
A) an increase in the marginal propensity to consume
B) an increase in the marginal propensity to save
C) a reduction in taxes
D) a reduction in government spending
E) none of the above
Correct Answer:
Verified
Q1: Which of the following will not increase
Q3: Which of the following is included in
Q4: Which of the following would not be
Q5: Which of the following is an endogenous
Q6: Which of the following occurs when disposable
Q7: Suppose the consumption equation is represented by
Q8: For the U.S.economy,which of the following represents
Q9: The marginal propensity to consume represents
A)the level
Q10: Disposable income equals
A)income minus saving.
B)income minus both
Q11: Let the consumption function be represented by
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