how-does-a-lower-mpc-affect-the-size-of-the-multiplier-and-the-total-increase-in

Question

How does a lower MPC affect the size of the multiplier and the total increase in GDP?

Accepted Answer

A lower MPC decreases the multiplier and the total increase in GDP.

Answer

A lower MPC only affects the multiplier, not GDP.

Answer

A lower MPC increases the multiplier and the total increase in GDP.

Answer

A lower MPC has no effect on the multiplier or GDP.