As the Marginal Propensity to Consume (MPC) Decreases, the Spending

question 36

Multiple Choice

As the marginal propensity to consume (MPC) decreases, the spending multiplier

• A) increases.
• B) decreases.
• C) remains constant.
• D) becomes indefinable.

---

Definitions:

Leadership Ability

The capacity to guide, direct, or influence people in a way that achieves goals and garners respect and cooperation from others.

Ralph Stogdill

A prominent researcher in the field of leadership studies, known for his work on leadership traits and behaviors.

Assessment Instrument

A tool or method used to evaluate, measure, or determine the level, ability, or quality of something.

Leadership Ability

The capacity or skill set that enables an individual to lead, influence, and guide others effectively towards achieving goals.