Multiplier is calculated -> inversely related to MPS.
Option 1: Incorrect -> opposite happens.
Option 2: Incorrect -> change occurs.
Option 3: Incorrect -> enough information given.
Option 4: Correct -> decrease in multiplier size.
Value of MPS (Marginal Propensity to Save) is increased from 0.4 to 0.5. What would be the impact on Multiplier?
Verified 13 Jul 2026.
The size of the multiplier would be increased.
The size of the multiplier would remain same.
Value of multiplier is undetermined with the given information.
The size of the multiplier would be decreased.
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