Quzlet The larger the Marginal Propensity to ConsumeThe larger the Marginal Propensity to Save The larger the Multiplier A larger change in government expenditures is required to solve a recessionary gap The smaller the Multiplier

The larger the Marginal Propensity to Consume, the larger the Multiplier.

Option: B

Explanation:

When their is the rise in the ultimate revenue resulting from any new spending injections the multiplier effect get applied. The scale of the multiplier relies on the marginal choices that households make to invest, named the (mpc) marginal propensity to consume or invest, named the marginal propensity to save (mps).

It's worth noting that when you invest money that expenditure is the money of someone else, and so on. Marginal inclinations indicate the proportion of additional revenue allocated to particular operations, such as UK companies' business spending, household savings, and foreign import expenses.