If the Marginal Propensity to Save (MPS)increases, the Multiplier

question 109

Multiple Choice

If the marginal propensity to save (MPS) increases, the multiplier

• A)decreases.
• B)increases.
• C)stays the same.
• D)can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).

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Definitions:

Without Compensation

Performing an action or providing a service without receiving any form of payment or benefit in return.

Heir

A person legally entitled to receive a share of the deceased's estate.

Decedent

A person who has died, especially in context relating to the disposal of their estate.

Gift

The voluntary and gratuitous transfer of property or funds from one person to another without any expectation of receiving something in return.