Multiple Choice
The multiplier is larger if the
A) marginal propensity to consume is larger.
B) marginal propensity to save is larger.
C) income tax rate is higher.
D) marginal propensity to import is larger.
Correct Answer:

Verified
Correct Answer:
Verified
Q416: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q417: The government increases its expenditures. The steeper
Q418: The smaller the slope of the AE
Q419: Disposable income is equal to<br>A) consumption expenditure
Q420: If aggregate planned expenditure is less than
Q422: The government estimates that the multiplier is
Q423: If investment decreases, the AE curve shifts<br>A)
Q424: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -In the above
Q425: In the economy of St. Maynard Island,
Q426: If prices are fixed, an increase in