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A Multiplier Effect of 3 Means That

Question 115

Multiple Choice

A multiplier effect of 3 means that:


A) nonincome-determined spending is three times as large as income-determined spending.
B) an initial change in income-determined spending causes a change in total output that is three times as large.
C) an initial change in nonincome-determined spending causes a change in total output that is three times as large.
D) an initial change in income-determined spending causes a change in nonincome-determined spending that is three times as large.

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