The larger the MPC,the larger the value of the multiplier.

Name: The larger the MPC,the larger the value of the multiplier.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The multiplier is inversely proportional to the MPC (Marginal Propensity to Consume), meaning that a larger MPC will result in a larger value for the multiplier. This is because a higher MPC means that consumers are spending a larger portion of their income, leading to increased demand and higher levels of economic activity. Therefore, option A is true.

The Larger the MPC,the Larger the Value of the Multiplier