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    Exam 10: Basic Macroeconomic Relationships
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    The Practical Significance of the Multiplier Is That It
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The Practical Significance of the Multiplier Is That It

Question 69

Question 69

Multiple Choice

The practical significance of the multiplier is that it


A) equates the real interest rate and the expected rate of return on investment.
B) magnifies initial changes in spending into larger changes in GDP.
C) keeps inflation within tolerable limits.
D) helps to stabilize the economy.

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