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  3. Study Set
    Principles of Economics
  4. Exam
    Exam 36: Appendix: Aggregate Expenditure and the Multiplier
  5. Question
    The Multiplier
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The Multiplier

Question 56

Question 56

Multiple Choice

The multiplier:


A) increases unplanned inventory stocks in the economy.
B) creates additional government expenditure expenses.
C) minimizes the impact of a change in spending on GDP.
D) causes a ripple effect of an increase in spending on GDP.

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