How do varying marginal propensities to consume (MPC) affect the size of the multiplier effect?

• A. A higher MPC results in a smaller multiplier, reducing the impact of spending changes.
• B. A higher MPC results in a larger multiplier, amplifying the impact of spending changes.
• C. A lower MPC results in a larger multiplier.
• D. The MPC has no effect on the size of the multiplier.

Answer: (B)