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Which one of the following statements is correct? A.The expenditure multiplier will decrease if the tax rate increases. B.The expenditure multiplier will decrease if the

Which one of the following statements is correct?

  • A.The expenditure multiplier will decrease if the tax rate increases.
  • B.The expenditure multiplier will decrease if the propensity to import decreases.
  • C.The expenditure multiplier will decrease if the propensity to save decreases.
  • D.The expenditure multiplier will increase if the propensity to import increases.

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