An Increase in the MPC

question 73

Multiple Choice

An increase in the MPC

• A)increases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• B)increases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.
• C)decreases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• D)decreases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.

---

Definitions:

Cancellation

The act of declaring a contract or agreement null and void, thereby releasing the parties from their obligations under the contract.

Comparative Negligence

A legal doctrine that allocates the responsibility and damages in an accident proportionally to the degree of fault of each party involved.

Victory Clothing Co. V.Wachovia Bank, N.A.

A specific legal case, which should be researched for details related to its outcomes or legal principles involved.

Stop Payment

An order given by an account holder to their bank to not pay a specific check that has been issued or to halt a payment that has been requested.