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What literary structure features an outer narrative that contains one or more inner stories?

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Frame narrative

A frame narrative acts as a "story within a story," where an introductory tale sets the stage for a series of inner narratives. This technique is famously used in The Arabian Nights, where Scheherazade tells stories to postpone her execution, making her survival the "frame" for the entire collection. It provides a clever way for authors to establish context or a specific perspective for the stories being told.

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