Which of the Following Would Tend to Make the Multiplier

question 50

Multiple Choice

Which of the following would tend to make the multiplier smaller?

• A)an increase in the marginal propensity to consume
• B)an increase in the marginal propensity to save
• C)a reduction in taxes
• D)a reduction in government spending
• E) none of the above

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Definitions:

Central Nervous System

The primary information processing center of the body, consisting of the brain and spinal cord, responsible for processing and sending out signals.

Parasympathetic Division

Part of the ANS that restores the body to normal functioning after arousal and is responsible for the day-to-day functioning of the organs and glands; “eat-drink-and-rest system.”

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the back, involved in transmitting neural signals between the brain and the rest of the body.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses for the brain.