Changes in which of the following will affect the size of the multiplier?
I. marginal propensity to import
II. marginal propensity to consume
III. marginal income tax rate
A) I, II, and III
B) I only
C) I and II only
D) II only

Question

Quizplus · Accepted Answer

The size of the multiplier is affected by changes in the marginal propensity to import, the marginal propensity to consume, and the marginal income tax rate, as all these factors influence the overall level of spending and saving in an economy.

Changes in Which of the Following Will Affect the Size