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

• A. A lower MPC only affects the multiplier, not GDP.
• B. A lower MPC increases the multiplier and the total increase in GDP.
• C. A lower MPC decreases the multiplier and the total increase in GDP.
• D. A lower MPC has no effect on the multiplier or GDP.

Answer: (C)