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Which Statement Illustrates the Idea of the Multiplier

Question 34

Multiple Choice

Which statement illustrates the idea of the multiplier?


A) The new stadium will generate $100 million in spinoff spending.
B) Higher expected profits are leading to higher investment spending by business, and will lead to higher consumer spending.
C) The loss of government jobs will hurt the local retail industry.
D) Taking the grain elevator out of our small town will destroy 200 jobs.
E) All of the above.

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