spending multiplier is smaller the: greater the change in the price level that follows a spending change larger the marginal propensity to withdraw larger the marginal propensity to consume greater the change in government purchases in the economy greater the change in the interest

spending multiplier is smaller the: greater the change in the price level that follows a spending change larger the marginal propensity to withdraw larger the marginal propensity to consume greater the change in government purchases in the economy greater the change in the interest

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The numerical value of the spending multiplier is smaller the:
greater the change in the price level that follows a spending change
larger the marginal propensity to withdraw
larger the marginal propensity to consume
greater the change in government purchases in the economy
greater the change in the interest rate in the economy.
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