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The value of the expenditure multiplier increases when tax rates increase. the marginal propensity to consume increases. the marginal propensity to consume decreases. the average

The value of the expenditure multiplier increases when

tax rates increase.

the marginal propensity to consume increases.

the marginal propensity to consume decreases.

the average propensity to consumer increases.

the average propensity to consume decreases.

When economists discuss the "multiplier effect," they mean that

when taxes increase, output increases by a greater amount.

when government spending increases, output increases by the same amount.

when consumption increases, output increases by the same amount.

when investment increases by a little, output increases by a greater amount.

when investment increases, output increases by the same amount.

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