Other Things Equal, an Increase in the Marginal Propensity to Save

Multiple Choice

Other things equal, an increase in the marginal propensity to save will __________ the size of the "autonomous spending multiplier" (or "the multiplier") ; other things equal, an Increase in the marginal tax rate __________ the size of the "autonomous spending multiplier" (or "the multiplier") .

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