Question: Explain whether each of the following would cause the value of the multiplier to be larger or smaller. a. An increase in real GDP increases

Explain whether each of the following would cause the value of the multiplier to be larger or smaller.
a. An increase in real GDP increases imports.
b. An increase in real GDP increases interest rates.
c. An increase in real GDP increases the marginal propensity to consume.
d. An increase in real GDP causes the average tax rate paid by households to decrease.
e. An increase in real GDP increases the price level.

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