The larger the mpc, the ____ the income-expenditure multiplier and the ____ the effect of a change in autonomo

Question

The larger the mpc, the ____ the income-expenditure multiplier and the ____ the effect of a change in autonomous spending on short-run equilibrium output.

A. larger; larger

B. larger; smaller

C. smaller; smaller

D. smaller; larger

E. smaller; more uncertain

Answer 1

A. larger; larger