Asked by
Tahjanae Henderson
on Dec 16, 2024
Verified
The larger the marginal propensity to save,other things constant,_____.
A) the larger the marginal propensity to consume
B) the larger the multiplier
C) the flatter the consumption function
D) the flatter the saving function
E) the steeper the consumption function
Marginal Propensity
The additional amount that consumers are likely to spend out of an additional unit of income.
Consumption Function
A formula in economics that shows the link between overall consumption and the gross national income.
- Calculate and discern the outcomes of the fundamental spending multiplier linked to the marginal propensity to consume and save.
- Gain insight into the connection between the marginal propensity to consume (MPC) and the multiplier effect on spending.
Verified Answer
RI
Learning Objectives
- Calculate and discern the outcomes of the fundamental spending multiplier linked to the marginal propensity to consume and save.
- Gain insight into the connection between the marginal propensity to consume (MPC) and the multiplier effect on spending.
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