Which of the following makes the multiplier larger?
A. an increase in the marginal propensity to import
B. an increase in the tax rate
C. an increase in the marginal propensity to consume
D. an increase in the marginal propensity to save
Answer:C
Which of the following makes the multiplier larger?
A. an increase in the marginal propensity to import B. an increase in the tax rate C. an increase in the marginal propensity to consume D. an increase in the marginal propensity to save