The value of the multiplier will be larger,the
A)Smaller the slope of the savings function.
B)Smaller the APC.
C)Larger the slope of the savings function.
D)Smaller the APS.

Question

Quizplus · Accepted Answer

The multiplier is inversely related to the marginal propensity to save (MPS), which is the slope of the savings function. A smaller slope of the savings function means a smaller MPS, leading to a larger multiplier.

The Value of the Multiplier Will Be Larger,the