Which of the Following Makes the Multiplier Larger

question 96

Multiple Choice

Which of the following makes the multiplier larger?

• A) an increase in the marginal propensity to save
• B) an increase in the tax rate
• C) an increase in the marginal propensity to import
• D) an increase in the marginal propensity to consume

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Definitions:

Standardized

Establishing uniform standards or norms for a process, product, or system to ensure consistency and comparability across different instances.

Advertising

The profession or act of creating promotional content for commercial goods or services.

Standardized Product

Goods that are uniform in quality and specifications, enabling them to be interchangeable with similar products from other producers.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, free entry and exit, and perfect information, leading to price takers.