Classify the items regarding marginal propensity to consume $($MPC$),$ the multiplier, and economic stability as true or false. The Keynesian cross model is another name for the Income$-$Expenditure model.

False

Answer Bank

Macroeconomic policy has a larger effect when the multiplier is higher.

In general, people consume more than they save.

$MPC=1$

MPC is constant in the Keynesian cross model.

A lower multiplier leads to a more stable economy.

A higher multiplier leads to a more stable economy.