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Answer to Question #109393 in Macroeconomics for Cedrick
Question #109393
Which of the following factors will increase the size of the multiplier?
1. An increase I'm government spending.
2. An increase in the marginal propensity to consume.
3. An increase in the marginal propensity to save.
4. An increase in autonomous spending.
1. An increase I'm government spending.
2. An increase in the marginal propensity to consume.
3. An increase in the marginal propensity to save.
4. An increase in autonomous spending.
Expert's answer
The correct answer is: An increase in the marginal propensity to consume
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