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Unformatted text preview: d) wages outstrip investments 4) A problem with a lack of confidence in the market is that a) it dries up capital investments b) it overstimulates capital formation c) it prevents income from going into savings d) it postpones the purchase of basic consumer goods 5) The multiplier effect implies that a) economic growth is typically slow and steady b) a market economy usually rises from year to year c) a small change in investment has widespread repercussions d) stock market changes are felt mostly in the credit market...
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- Fall '08