If the marginal propensity to save (MPS) increases, the multiplier
A) decreases.
B) increases.
C) stays the same.
D) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
Answer: A
If the marginal propensity to save (MPS) increases, the multiplier
A) decreases.
B) increases.
C) stays the same.
D) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
Answer: A