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Question #48132

An increase in the marginal propensity to consumer (MPC) ?

Options:

A) raises the value of the multiplier

B) has no impact on the value of the multiplier?

C) rarely occurs because the MPC is set by congressional legislation

D) lowers the value of the multiplier

Answer: An increase in the marginal propensity to consumer (MPC) raises the value of the multiplier.

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