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.
C
You might also like to view...
The gold standard fixes the:
a. future price of gold in terms of silver. b. price of gold in terms of international currencies. c. future price of silver in terms of gold. d. money supply in terms of paper currency. e. past exchange rate and the future exchange rate.
Of the owners of the following firms, which does NOT have unlimited liability for the business' debts?
A) Roy Ray's Grocery Store, Roy Ray, proprietor B) the partnership of Reese and Jones, Attorneys-at-Law C) the Microsoft Corporation D) Wren's Feed and Seed Store, a proprietorship