Other Things Constant, How Does an Increase in the Marginal

question 123

Multiple Choice

Other things constant, how does an increase in the marginal propensity to consume affect the value of the multiplier?  

• A) It increases the value of the multiplier. 
• B) It decreases the value of the multiplier. 
• C) It makes the value of the multiplier positive. 
• D) It makes the value of the multiplier negative.

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Definitions:

Johari Window

A model that describes the relationship between self-awareness and interpersonal communication, illustrating what is known by the person, known by others, and unknown by all.

Self-esteem

An individual's overall subjective emotional evaluation of their own worth or personal value.

Compensate

To provide something, typically money, in recognition of loss, suffering, or the need fulfilled, to make amends or give an equivalent.

Andrew Ure

A Scottish doctor, scholar, and industrialist of the 19th century, known for his contributions to the study of economics and manufacturing.