The size of the multiplier depends in part on the
A)level of autonomous expenditures.
B)change in autonomous consumption.
C)level of consumption.
D)marginal propensity to consume.

Question

Quizplus · Accepted Answer

The size of the multiplier depends on the marginal propensity to consume (MPC), which is the fraction of each additional dollar of income that is spent on consumption. The higher the MPC, the higher the multiplier. Therefore, D is the best choice as it directly relates to the MPC.

The Size of the Multiplier Depends in Part on the