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Other Things Equal, the Multiplier Will Be Greater

Question 31

Multiple Choice

Other things equal, the multiplier will be greater


A) the larger the fraction of each dollar earned that goes to taxes.
B) the larger the marginal propensity to consume.
C) the larger the fraction of each dollar of disposable income that goes to saving.
D) the larger the marginal propensity to save.
E) the steeper the aggregate demand curve.

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