65. If the marginal propensity to consume (MPC) is large, it will have no effect on the multiplier .a make the simple multiplier larger .b make the simple multiplier smaller .c increase the interest rate .d
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A larger MPC means that people are more likely to spend their additional income rather than save it. The simple multiplier, also known as the Keynesian multiplier, is a measure of the impact of an increase in spending on the overall economy. It is calculated Show more…
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