The multiplier effect refers to the fact that
A) a one-unit change in aggregate net expenditures causes a greater than one-unit change in real income.
B) a one-unit change in aggregate net expenditures causes a less than one-unit change in real income.
C) a one-unit change in aggregate net expenditures causes a greater than one-unit change in real interest rates.
D) a one-unit change in aggregate net expenditures causes a less than one-unit change in real desired investment.
Answer: A
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