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The Simple Formula for Calculating the Size of the Multiplier

Question 3

Multiple Choice

The simple formula for calculating the size of the multiplier effect is


A) 1 + (% of leakages from additional income) .
B) 1 - (% of leakages from additional income) .
C) 1 / (% of leakages from additional income) .
D) 1 × (% of leakages from additional income) .
E) none of the above.

Correct Answer:

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