An Increase in the MPC

question 73

Multiple Choice

An increase in the MPC

• A)increases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• B)increases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.
• C)decreases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• D)decreases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.

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Definitions:

Concrete Irrationality

A notion in philosophy that suggests the presence of irrational aspects in concrete reality, challenging the predominance of rational thought in understanding existence.

René Magritte

A Belgian surrealist artist known for his thought-provoking images that challenge observers' preconditioned perceptions of reality.

Salvador Dalí

was a Spanish surrealist artist known for his eccentric and dream-like paintings, sculptures, and other creative works.

Joan Miró

A Spanish painter, sculptor, and ceramicist born in the 20th century, known for his surrealist works that blend fantasy with abstract elements.