The fluctuations in the income level that result from changes in investment spending     depend only on the magnitude of the changes in investment spending but not on the size of the MPC     tend to be larger if the income tax rate (t) is larger     tend to be larger with a larger MPC     tend to be larger the larger the marginal propensity to import     tend to be larger with a larger MPS

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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The fluctuations in the income level that result from changes in investment spending

   

depend only on the magnitude of the changes in investment spending but not on the size of the MPC

   

tend to be larger if the income tax rate (t) is larger

   

tend to be larger with a larger MPC

   

tend to be larger the larger the marginal propensity to import

   

tend to be larger with a larger MPS

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