If the MPC Increases from 0

question 140

Multiple Choice

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

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

---

Definitions:

Autonomous Motivation

Motivation that arises from genuine interest or personal value, rather than external pressures or rewards.

Effective Performance

The degree to which an individual, team, or organization meets or exceeds the required outcomes or objectives.

Basic Psychological Needs

Fundamental requirements for psychological well-being, including autonomy, competence, and relatedness.

Autonomous

Having the ability or privilege to make one's own decisions or actions independent of external influence or control.