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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    The Logic of the Multiplier Effect Applies
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The Logic of the Multiplier Effect Applies

Question 58

Question 58

Multiple Choice

The logic of the multiplier effect applies


A) only to changes in government spending.
B) to any change in spending on any component of GDP.
C) only to changes in the money supply.
D) only when the crowding-out effect is sufficiently strong.

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