If the marginal propensity to save (MPS) decreases, the multiplier
A) increases.
B) decreases.
C) stays the same.
D) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC) .
Correct Answer:
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Q380: Q381: If an economy saves 20 percent of Q382: The multiplier helps explain Q383: If an increase of $5 million in Q384: If autonomous investment increases by $100 million Q386: If the marginal propensity to consume (MPC) Q387: If the marginal propensity to save (MPS) Q388: If initial equilibrium real Gross Domestic Product Q389: If the marginal propensity to consume (MPC) Q390: If the marginal propensity to save (MPS)
A) why a rise
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