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    Exam 9: Aggregate Demand and Aggregate Supply
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    The Reason Why an Increase in Government Expenditure Has a More
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The Reason Why an Increase in Government Expenditure Has a More

Question 114

Question 114

Multiple Choice

The reason why an increase in government expenditure has a more than proportional impact on aggregate demand is known as:


A) the wealth effect.
B) the multiplier effect.
C) the interest rate effect.
D) the divider effect.

Correct Answer:

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