Author Question: If the MPC = 0.75, the government spending multiplier would be A) 0.25. B) -7.5. C) 4. D) ... (Read 60 times)

mspears3 · **on:** Jun 30, 2018

If the MPC = 0.75, the government spending multiplier would be

A) 0.25. B) -7.5. C) 4. D) 25.

Question 2

If the marginal propensity to save (MPS) increases, the multiplier

A) decreases.
B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
C) increases.
D) stays the same.