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:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the CNS to limbs and organs.

Peripheral Nervous System

The section of the nervous system lying outside the brain and spinal cord, which contains all the nerves that connect the CNS to the rest of the body.

Central Nervous System

The Central Nervous System (CNS) consists of the brain and spinal cord, serving as the primary processing center for the entire nervous system.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the muscles and glands, comprising the sympathetic and parasympathetic nervous systems.