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At Each Round of the Multiplier Process, Increases in Income

Question 24

Multiple Choice

At each round of the multiplier process, increases in income:


A) leak out of the expenditures stream in the form of investment and taxes.
B) leak out of the expenditures stream in the form of saving and imports.
C) are matched by a smaller increase in expenditures.
D) result in even greater increases in expenditures due to investment and exports.
E) result in no change in total expenditures.

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