All Subjects
Light
collapse
Practice Quizzes
AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.2
Which of the following represents the relationship between the size of the tax multiplier and the marginal propensity to consume (MPC)?
The tax multiplier is always larger than the spending multiplier regardless of the MPC.
The tax multiplier is larger than the spending multiplier when the MPS is higher.
The tax multiplier is larger than the spending multiplier when the MPC is smaller.
The tax multiplier is always smaller than the spending multiplier regardless of the MPC.
Related content
Practice quizzes
Practice this subject
Practice this unit
Practice this topic
Study guides (1)
AP Macroeconomics - 3.2 Spending and Tax Multipliers
Key terms
Marginal Propensity to Consume (MPC)
Tax Multiplier
About Us
About Fiveable
Blog
Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
Stay Connected
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
About Us
About Fiveable
Blog
Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Back
Practice Quiz
Guides
Glossary
Guides
Glossary
Next
