If the MPC Increases from 0

question 115

Multiple Choice

If the MPC increases from 0.75 to 0.80 and there are no income taxes or imports,

• A) the slope of the consumption function becomes smaller.
• B) the multiplier becomes smaller.
• C) the multiplier becomes larger.
• D) the slope of the savings function becomes larger.

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Definitions:

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The extent to which students have learned and are able to demonstrate knowledge and skills as defined by educational standards and goals.

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A psychological condition in which an individual experiences excessive fear or anxiety about being separated from attachment figures.