Other Things Constant, How Would a Smaller Marginal Propensity to Save

question 87

Multiple Choice

Other things constant, how would a smaller marginal propensity to save affect the multiplier?  

• A) The multiplier would increase. 
• B) The multiplier would remain the same. 
• C) The multiplier would become smaller. 
• D) The multiplier would be negative.

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Definitions:

Loyalty To Neighbors

A sense of allegiance or support given to those living in close proximity, often manifesting in community assistance and solidarity.

Very Attractive

Possessing physical or other qualities that generate a high level of appeal or interest in others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Public Image

The perception of an individual, company, or organization held by the public, shaped by various forms of communication media and firsthand experiences.