9. A cut in taxes , therefore shifting the aggregate demand curve to the A) decreases government transfers and consumption; right B) increases disposable income and consumption; right C) decreases the marginal propensity to save and consumption; left D) increases spending and investment; left 10. The marginal propensity to consume is: A) increasing if the marginal propensity to save is increasing. B) the proportion of total disposable income that the average family consumes. C) the change in consumer spending divided by the change in aggregate disposable income. D) the change in consumer spending less the change in aggregate disposable income. 11. The MPS plus the MPC must equal: A) zero. B) one. C) income. D) saving. 12. If the marginal propensity to save is 0.3, the size of the multiplier is: A) 3.3. B) 2.3. C) 1.3 D) 0.7. 13. The multiplier is: A) 1/[1-MPC]. B) MPSIMPC. C) 1/[MPC]. D) 1[1+MPC] 14. If disposable income increases by $5 billion and consumer spending increases by $4 billion, the marginal propensity to consume is equal to: A) 20. B) 0.8. C) 1.25. D) 9