Does an increase in the size of the marginal propensity to, Ask an Expert

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Does an increase in the size of the marginal propensity to consume have the effect of increasing, decreasing, or not changing the size of autonomous spending multipliers (that is, the investment or government spending multiplier)?

1) increases the size of the multipliers

2) decreases the size of the multipliers

3) does not affect the size of the multipliers

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Microeconomics, Economics

Category:- Microeconomics
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