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Multiplier Effect of Investment Spending
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Problem 10
Multiplier Effect of Investment Spending
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15. Income and Consumption / Multiplier Effect of Investment Spending / Problem 3
Problem 3
Why is understanding the multiplier effect important for policymakers?
A
It allows policymakers to predict inflation rates accurately.
B
It enables policymakers to control unemployment directly.
C
It provides a method for calculating tax revenues.
D
It helps policymakers estimate the impact of investment spending on economic growth.
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