The diagram shows the initial saving function moving from S1 to S2. If the saving function shifts to S2, what is the effect on marginal propensity to consume and the multiplier?
- Amarginal propensity to consume decreases; multiplier decreases
- Bmarginal propensity to consume decreases; multiplier increases
- Cmarginal propensity to consume increases; multiplier decreases
- Dmarginal propensity to consume increases; multiplier increases