Other Things Equal, the Multiplier Will Be Greater

question 31

Multiple Choice

Other things equal, the multiplier will be greater

• A)the larger the fraction of each dollar earned that goes to taxes.
• B)the larger the marginal propensity to consume.
• C)the larger the fraction of each dollar of disposable income that goes to saving.
• D)the larger the marginal propensity to save.
• E)the steeper the aggregate demand curve.

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Definitions:

Cognitive Researchers

Scientists who study the mental processes involved in perception, learning, memory, and reasoning.

Thinking

The process of considering or reasoning about something; the mental manipulation of information to form opinions, make decisions, or solve problems.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns, often used in the context of consciousness and attention.

Basic Psychology

The study of fundamental principles, theories, and research methods in psychology.