Other Things Equal, in a Keynesian Income Model, the Autonomous

Multiple Choice

Other things equal, in a Keynesian income model, the autonomous spending multiplier will __________ if there is a decrease in the marginal propensity to consume, and the Autonomous spending multiplier __________ if there is a decrease in the marginal Propensity to import (MPM) .

A) decrease; also will decrease
B) decrease; will increase
C) increase; will decrease
D) increase; also will increase