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At the Beginning of a Recession, the Expenditure Multiplier

Question 7

Multiple Choice

At the beginning of a recession, the expenditure multiplier


A) offsets the initial cut in autonomous expenditure and slows the recession.
B) reinforces the initial cut in autonomous expenditure and adds force to the recession.
C) offsets the initial cut in autonomous expenditure and reverses the recession.
D) reinforces the initial cut in autonomous expenditure and reverses the recession.
E) has no effect on the recession.

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