When the Marginal Propensity to Consume (MPC) Increases

question 152

Multiple Choice

When the marginal propensity to consume (MPC) increases

• A) the multiplier remains unchanged.
• B) the multiplier increases.
• C) the multiplier decreases.
• D) the average propensity to save remains unchanged.

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Definitions:

Risk Taker

An individual or entity that is willing to take on risk in pursuit of reward, often in the context of business or investment.

Private Enterprise

Businesses that are owned and operated by private individuals or groups, rather than being controlled or owned by the government.

Tolerate Ambiguity

Tolerating ambiguity refers to the ability to remain productive and calm when situations are uncertain or unclear.

Financial Success

The achievement of financial objectives and stability, often characterized by an individual's or organization's ability to generate and manage wealth effectively.