Assume that the slope of the saving function

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Assume that the slope of the saving function becomes steeper, will this change in the economy, by itself, have the effect of increasing, decreasing, or not changing the size of autonomous spending multipliers (that is, the investment or government spending multiplier)?

increases the size of multipliers

decreases the size of the multipliers

does not affect the size of the multipliers

Please explain, the correct answer is decreases the size of the multipliers

Reference no: EM131093203

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