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Which one of the following statements correctly describes the multiplier effect? A. The multiplier effect means that a decline in the MPC can cause GDP
Which one of the following statements correctly describes the multiplier effect? A. The multiplier effect means that a decline in the MPC can cause GDP to rise by several times that amount. B. The multiplier effect means that consumption is typically several times as large as saving. C. The multiplier effect means that an increase in investment can cause GDP to change by a larger amount. D. The multiplier effect means that a change in consumption can cause a larger increase in investment.
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