If the marginal propensity to save is low a. The spending multiplier will be reduced b. Increase the spending multiplier c. Has no effect on the spending multiplier's value d. Raise the rate of interest

If the marginal propensity to save is low a. The spending multiplier will be reduced b. Increase the spending multiplier c. Has no effect on the spending multiplier's value d. Raise the rate of interest

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 11SQ

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Question

If the marginal propensity to save is low

a. The spending multiplier will be reduced

b. Increase the spending multiplier

c. Has no effect on the spending multiplier's value

d. Raise the rate of interest

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