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AP Macroeconomics
Unit 3 – National Income and Price Determination
Topic 3.2
Which of the following represents the relationship between the MPC and the size of the spending multiplier?
The lower the MPC, the larger the spending multiplier.
The higher the MPC, the smaller the spending multiplier.
The MPC has no impact on the size of the spending multiplier.
The higher the MPC, the larger the spending multiplier.
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AP Macroeconomics - 3.2 Spending and Tax Multipliers
Key terms
Spending Multiplier
MPC
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
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Crisis Text Line
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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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