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The Expenditure Multiplier Indicates That

Question 33

Multiple Choice

The expenditure multiplier indicates that


A) changes in investment, government, or consumption spending can trigger much larger changes in output.
B) an 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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