Which of the following tends to increase the spending multiplier?
The spending multiplier M = 1/(1 – MPC) = 1/MPS, so an increase in the marginal propensity to consume increases the multiplier.
269 MCQ for effective preparation of the test of Macroeconomics of Economics section.
Read the MCQ statement: Which of the following tends to increase the spending multiplier? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 61-4071.