What happens if there is a rise in the marginal propensity to consume (MPC) a) Lowers the value of the multiplier c) Has no impact on the value of the multiplier b) Rarely occurs because the MPC is set by congressional legislation d) Raises the value of the multiplier
What happens if there is a rise in the marginal propensity to consume (MPC) a) Lowers the value of the multiplier c) Has no impact on the value of the multiplier b) Rarely occurs because the MPC is set by congressional legislation d) Raises the value of the multiplier
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section11.A: Graphical Treatment Of Taxes And Fiscal Policy
Problem 2DQ
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What happens if there is a rise in the marginal propensity to consume (MPC)
a) Lowers the value of the multiplier
c) Has no impact on the value of the multiplier
b) Rarely occurs because the MPC is set by congressional legislation
d) Raises the value of the multiplier
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