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A Change in Any Component of Aggregate Demand Creates a Larger

Question 167

Multiple Choice

A change in any component of aggregate demand creates a larger change in overall aggregate demand.This is the ________ effect,and it means,for example,that a(n) ________ in consumption will cause an even larger ________ in AD.


A) liquidity;increase;increase
B) liquidity;decrease;decrease
C) multiplier;decrease;decrease
D) growth;increase;decrease
E) multiplier;decrease;increase

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