If the marginal propensity to import increases, then the
A. multiplier will decrease in value.
B. multiplier will increase in value.
C. multiplier will not change in value.
D. effect on the multiplier will depend on what happens to exports.
Answer:A
If the marginal propensity to import increases, then the
A. multiplier will decrease in value. B. multiplier will increase in value. C. multiplier will not change in value. D. effect on the multiplier will depend on what happens to exports.