What are the implications of a high marginal propensity to consume (MPC) on the multiplier effect?

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

Answer: (B)