c. which of the following best describes the relationship between the mpc and the impact of a change in government spending on gdp. multiple choice the larger the mpc, the larger the impact on gdp of a given change in government spending. the larger the mpc, the smaller the impact on gdp of a given change in government spending. the impact on gdp of a change in government spending does not depend on the size of the mpc. it is impossible to say unless we know the tax rate.

The correct answer will be the larger the MPC (marginal propensity to consume), the larger the impact on GDP of a given change in government spending.

The percentage of an overall salary increase that a customer spends on purchasing goods and services rather than saving is known as the marginal propensity to consume (MPC) in economics. Keynesian macroeconomic theory includes a concept known as marginal propensity to consume, which is determined as the change in demand divided by the shift in earnings. Propensity to consume is the percentage of disposable income that people spend on consumption. MPC is the percentage of additional cash which a person spends.

The higher the MPC (marginal propensity to consume) will be, there will be a positive impact on the economy as due to higher demand of goods and services the economy will flourish.

Learn more about marginal propensity to consume (MPC) here:

https://brainly.com/question/29035456

#SPJ4