how-might-a-high-marginal-propensity-to-consume-affect-the-effectiveness-of-a-go

Question

How might a high marginal propensity to consume affect the effectiveness of a government stimulus package?

Accepted Answer

It would likely increase the effectiveness by boosting overall consumption.

Answer

It would likely decrease the effectiveness by reducing overall consumption.

Answer

It would likely lead to increased savings rather than consumption.

Answer

It would have no effect on the effectiveness of the stimulus package.