The multiplier effect tends to

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The multiplier effect magnifies small changes in spending into much larger changes in output and income. As a result, small injections of spending into the economy can have a significant impact on increasing economic activity and output. This can lead to greater stability and growth in the economy. However, if spending decreases, the multiplier effect can also work in reverse, amplifying the impact of the decrease in spending and potentially leading to instability.

The Multiplier Effect Tends to