Figure 10-1 ​

Multiple Choice

Figure 10-1
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-What does inflation do to the value of the oversimplified multiplier?

A) Inflation increases the value of the multiplier above the value of the oversimplified formula.
B) Inflation does not change the value of the multiplier.
C) Inflation decreases the value of the multiplier below the value of the oversimplified formula.
D) Inflation increases the value of the multiplier unless the level of unemployment also rises.