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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    The Less Inventories Firms Hold, the Larger the Multiplier
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The Less Inventories Firms Hold, the Larger the Multiplier

Question 130

Question 130

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The less inventories firms hold, the larger the multiplier.

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