Generally Speaking, the Effect on Income Resulting from a Change

question 24

Multiple Choice

Generally speaking, the effect on income resulting from a change in investment spending is greater if

• A)the average propensity to consume is smaller
• B)the marginal propensity to consume is smaller
• C)the marginal propensity to save is smaller
• D)the marginal propensity to save is larger
• E)the average propensity to save is larger

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