Author Question: When the marginal propensity to consume (MPC) increases A) the average propensity to save remains ... (Read 167 times)

bclement10 · **on:** Jun 30, 2018

When the marginal propensity to consume (MPC) increases

A) the average propensity to save remains unchanged.
B) the multiplier remains unchanged.
C) the multiplier decreases.
D) the multiplier increases.

Question 2

If the banking system has a required reserve ratio of 40 percent, then the money multiplier is

A) 2. B) 2.5. C) 4. D) 8.