Realistically, the impact of the multiplier is _______ the oversimplified multiplier formula.

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Quizplus · Accepted Answer

The oversimplified multiplier formula assumes a simple scenario of a closed economy with no leakages such as taxes, imports, and savings. In reality, leakages occur, and there are various other factors that influence the multiplier's impact on the economy. Therefore, the actual impact of the multiplier is likely to be lower than predicted by the simplified formula.

Realistically, the Impact of the Multiplier Is _______ the Oversimplified