Business, 15.04.2020 00:20 tus

According to the Bureau of Economic Analysis, during the recession of 2007minus2009, household saving as a fraction of disposable personal income increased from a low of just over 1 percent in the first quarter of 2008 to 5 percent in the second quarter of 2009. All else equal, a higher saving rate would A. decrease MPC, increase MPS, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output. B. increase MPC, decrease MPS, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output. C. increase MPC, decrease MPS, and increase the multiplier so that changes in planned investment will have a larger impact on equilibrium output. D. decrease MPC, increase MPS, and increase the multiplier so that changes in planned investment will have a larger impact on equilibrium output.

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