Which of the following events would cause a reduction in the size of the multiplier?Group of answer choicesan increase in the marginal propensity to consumean increase in the marginal propensity to savea reduction in taxesa reduction in government spending

The expenditure multiplier increases asGroup of answer choicesthe income of individuals decreases.the income of individuals increases.the savings of individuals decreases.the savings of individuals increases.

Which of the following changes would be the mostlikely to reduce the size of the money multiplier?a. a decrease in the required reserve ratiob. a decrease in excess reservesc. an increase in cash holding by consumersd. a decrease in bank runse. an increase in deposit insurance

In the simple Keynesian model, which of the following statements is false? Group of answer choices An increase in the marginal propensity to save will reduce the level of income in the economy. The reduction in output from an increase in taxation is larger the smaller is the marginal propensity to consume. An increase in lump sum taxation accompanied by an increase in government spending of the same size will increase output. The equilibrium level of output does not depend upon the size of the money multiplier.

The government spending multiplier is _____________.a.indirectly proportional to the MPCb.Lower than the tax revenuec.directly proportional to the MPCd.Higher than the MPCClear my choice

In an economy with no taxation and no external trade, the size of the multiplier depends on:Select one correct answerGroup of answer choicesThe marginal propensity to consume.The current level of aggregate demand.Investment.Autonomous consumption.