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Advanced Placement (AP), 17.05.2021 23:10 mariamoore198060
3. In a closed economy with lump sum taxes, if the marginal propensity to consume increased from 0.5 to 0.75, the simple spending multiplier and the marginal propensity to save (MPS) would change in which of the following ways? Multiplier. MPS
A. increase. increase
B. increase. decrease
C. no change. decrease
D. decrease. decrease
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3. In a closed economy with lump sum taxes, if the marginal propensity to consume increased from 0.5...
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