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    When Households' Marginal Propensity to Consume (MPC) Increases, the Size
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When Households' Marginal Propensity to Consume (MPC) Increases, the Size

Question 184

Question 184

Multiple Choice

When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:


A) also increases.
B) decreases.
C) remains unchanged.
D) reacts unpredictably.

Correct Answer:

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