The slope of the AE curve is 0.9. Investment decreases by $100 million and the price level is constant. Real GDP

Name: The slope of the AE curve is 0.9. Investment decreases by $100 million and the price level is constant. Real GDP
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The slope of the AE curve (marginal propensity to consume) is 0.9, meaning that for every dollar decrease in investment, GDP decreases by $10 due to the multiplier effect. A $100 million decrease in investment leads to a $1 billion decrease in GDP (100 million x 10).

The Slope of the AE Curve Is 0