The larger the slope of the AE curve, the
A) less likely that the multiplier will be affected.
B) smaller the value of the multiplier.
C) larger the value of the multiplier.
D) more likely that the multiplier will be inconsequential.

Question

Quizplus · Accepted Answer

The larger the slope of the AE curve, the larger the value of the multiplier. This is because a larger slope indicates that a given change in autonomous spending will result in a larger change in equilibrium output, leading to a higher multiplier value.

The Larger the Slope of the AE Curve, the