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Mutiprogramming helps increase the CPU utilization to some extent, but if the degree of Multiprogramming is increased above a certain limit (i.e Heavy Multiprogramming) it can lead to Thrashing and thus decrease the CPU utilization drastically.

Heavy Multiprogramming may lead to Thrashing, a condition where a system is spending more time Page Faulting (i.e swapping pages in and out of memory) rather than executing them, this leads to deterioration of system performance.

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