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  3. Study Set
    Principles of Macroeconomics
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    Exam 13: Consumption and the Aggregate Expenditures Model
  5. Question
    What Is the Multiplier Effect, That Is, Why Does Income
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What Is the Multiplier Effect, That Is, Why Does Income

Question 178

Question 178

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What is the multiplier effect, that is, why does income change by a multiple of the initial change in autonomous aggregate expenditures?

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Answered by ExamLex AI

The multiplier effect refers to the phen...

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