Question

What happens if there is a rise in the marginal propensity to consume (MPC)
a) Lowers the value of the multiplier
b) Rarely occurs because the MPC is set by congressional legislation
c) Has no impact on the value of the multiplier
d) Raises the value of the multiplier​

Answer 1

Explanation:

The higher the MPC, the higher the multiplier—the more the increase in consumption from the increase in investment; so, if economists can estimate the MPC, then they can use it to estimate the total impact of a prospective increase in incomes.

Answer 2

Answer:

d) Raises the value of the multiplier