An Increase in the Marginal Propensity to Save from

Multiple Choice

An increase in the marginal propensity to save from .1 to .2 will cause

A) an increase in the multiplier and a given change in autonomous consumption (c₀) to have a smaller effect on output.
B) an increase in the multiplier and a given change in autonomous consumption (c₀) to have a larger effect on output.
C) a reduction in the multiplier and a given change in autonomous consumption (c₀) to have a smaller effect on output.
D) a reduction in the multiplier and a given change in autonomous consumption (c₀) to have a larger effect on output.