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Each Additional Round of the Multiplier Process Will Tend to Be

Question 34

Multiple Choice

Each additional round of the multiplier process will tend to be larger:


A) the smaller the marginal propensity to consume.
B) the greater the rate of taxes.
C) the less people save from increases in their incomes
D) the larger the fraction of each dollar of domestic income spent on imported goods
E) the larger the marginal propensity to save.

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