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    Exam 12: Spending Others Money: Fiscal Policy, Deficits, and National Debt
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    If Leakages Out of the Circular Flow Are 40 Percent
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If Leakages Out of the Circular Flow Are 40 Percent

Question 38

Question 38

Multiple Choice

If leakages out of the circular flow are 40 percent of additional income, what is the size of the multiplier effect?


A) 2
B) 2.5
C) 3
D) 4
E) 5

Correct Answer:

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