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The Government Buys New Weapons Systems

Question 97

Multiple Choice

The government buys new weapons systems.The manufacturers of weapons pay their employees.The employees spend this money on goods and services.The firms from which the employees buy the goods and services pay their employees.This sequence of events illustrates


A) the accelerator effect.
B) the multiplier effect.
C) the chain effect.
D) the bandwagon effect.

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