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. The marginal propensity to consume Has a negative relationship to the spending multiplier Is always equal to 1 Represents the proportion of a consumer's
. The marginal propensity to consume Has a negative relationship to the spending multiplier Is always equal to 1 Represents the proportion of a consumer's income that is saved Is equal to 1.-'MPS Is the increase in consumption when disposable income increases by $1 rues->57. . The maximum effect on real GDP of a $100 million increase in government purchases of goods and services will be? a. An increase in $100 million An increase of more than $100 million An increase of less than $100 million An increases of either more than or less than $100 million depending on the MP0 Adecrease of $100 million FDP-PP' . The maximum effect on real GDP of a $100 million increase in government taxes will be? An increase in $100 million Adecrease of more than $100 million Adecrease of less than $100 million An increases of more than than $100 million An increases of either more than or less than $100 million depending on the MP0 seeps
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