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By Saying That the Size of the Multiplier Is Determined

Question 59

Multiple Choice

By saying that the size of the multiplier is determined by the marginal propensity to consume, we are asserting that


A) the crowding out effect is strong.
B) interest rates are the primary determinant of investment spending.
C) automatic stabilizers are not effective when the economy is overheated.
D) income is the primary determinant of consumption spending.

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