If the Marginal Propensity to Consume (MPC) Rises, the Multiplier

question 51

Multiple Choice

If the marginal propensity to consume (MPC) rises, the multiplier

• A) also rises.
• B) falls.
• C) stays the same.
• D) rises or falls, depending on the size of the increase in the MPC.

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Definitions:

Mutual Adjustment

is a mechanism of coordination among team or group members, where adjustments and adaptations are made through informal communication.

Integrator

An individual or tool that combines or coordinates separate elements or structures into a unified whole.

Standardization of Work Processes

The practice of implementing uniform procedures and criteria in organizational tasks to improve efficiency and quality.

Labour Coordination

The process of organizing and managing a workforce in order to achieve efficient production and meet organizational objectives.