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If Government Spending Increases,which Causes Producers to Hire More Workers,and

Question 116

Multiple Choice

If government spending increases,which causes producers to hire more workers,and as a result households have more income to spend,which causes aggregate demand to increase even more,this is known as the:


A) Magnifying process.
B) Multiplier process.
C) Saving effect.
D) Fiscal effect.

Correct Answer:

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