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    Exam 11: Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics
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    The Larger the Marginal Propensity to Consume
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The Larger the Marginal Propensity to Consume

Question 108

Question 108

Multiple Choice

The larger the marginal propensity to consume,


A) the larger the multiplier.
B) the larger the marginal propensity to save.
C) the higher the income level of the economy.
D) the smaller the change in income derived from a given change in government spending.

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