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

question 19

Multiple Choice

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

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

---

Definitions:

Symbolic Logic

A branch of logic that uses symbols to express logical representation and reasoning.

Bi-Conditional

A logical relationship where two statements are both true or both false simultaneously.

Tautology

A redundant or circular statement in which the conclusion is identical to the premise.

Declarative Statement

A sentence that makes a statement or expresses an opinion, rather than giving a command or asking a question.