The importance of the multiplier effect

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The importance of the multiplier effect is the understanding that a change in spending ultimately causes A larger change in GDP than the initial change in spendingtax revenues to increase by a multiple of the tax ratethe unemployment rate to change in the same direction that spending changedthe inflation rate to change in the opposite direction that spending changedGDP to change in the opposite direction that spending changed

Reference no: EM13916886

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