If the MPC Decreases,then

question 45

Multiple Choice

If the MPC decreases,then

• A)the MPS decreases.
• B)the multiplier decreases.
• C)the multiplier increases.
• D)MPC + MPS is less than 1.

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Definitions:

Variety of Tasks

A range of different activities or duties that a person or machine may be required to undertake.

Personal Liability

An individual’s personal responsibility for debts or obligations. The owners of sole proprietorships and partnerships are personally liable for the debts and obligations incurred by their businesses. If their firms go bankrupt or cannot meet debts, the owners will be personally responsible for the debts.

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.

Investment Account

A financial account that holds securities, shares, or other investments for the purpose of long-term growth or income.