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AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.2
Which of the following accurately describes the relationship between the marginal propensity to save (MPS) and the size of the spending multiplier?
The larger the MPS, the smaller the spending multiplier.
The relationship between the MPS and the size of the spending multiplier is indeterminate.
The MPS has no impact on the size of the spending multiplier.
The larger the MPS, the larger the spending multiplier.
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AP Macroeconomics - 3.2 Spending and Tax Multipliers
Key terms
Marginal Propensity to Save (MPS)
Spending Multiplier
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Cram Mode
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© 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.
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