If investment increases by $150 and, in response, equilibrium expenditure rises by $600,
A) the multiplier is 4.0.
B) the slope of the AE curve is 3.0.
C) the multiplier is 0.25.
D) the MPC is 4.
Correct Answer:
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Q344: The larger the multiplier, the the AE
Q345: Any change in the price level will
Q346: If the price level increases, the AE
Q347: An increase in investment spending results in
Q348: The multiplier measures the
A) horizontal difference between
Q350: Which of the following shifts the aggregate
Q351: An increase in shifts the AE curve
Q352: The aggregate demand curve slopes downward because
Q353: Intertemporal substitution means changes in purchases
A) through
Q354: The intertemporal substitution effect of a change
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