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The Magnitude of Cyclical Fluctuations Resulting from Any Initial Shock

Question 2

Multiple Choice

The magnitude of cyclical fluctuations resulting from any initial shock to the economy will be greater


A) the smaller the value of both the multiplier and the accelerator.
B) the greater the difference in the values of the multiplier and accelerator.
C) the greater the value of the multiplier and the smaller the value of the accelerator.
D) the greater the value of both the multiplier and the accelerator.

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