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    Macroeconomics Study Set 43
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    Exam 10: B: Basic Macroeconomic Relationships
  5. Question
    The Multiplier Effect
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The Multiplier Effect

Question 6

Question 6

Multiple Choice

The multiplier effect:


A) reduces the MPC.
B) magnifies small changes in spending into larger changes in output and income.
C) promotes stability of the general price level.
D) lessens upswings and downswings in business activity.

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