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The Spending Multiplier Indicates That

Question 70

Multiple Choice

The spending multiplier indicates that:


A) changes in investment, government, or consumption spending trigger much larger changes in real GDP.
B) an autonomous increase in saving will cause output to rise by a multiple of the additional saving.
C) a market economy will be more stable than classical economists thought.
D) the marginal propensity to consume is greater than one.

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