Suppose that last year the slope of the AE curve was 0.67 and this year the slope of the AE curve changes to 0.8. Which of the following BEST describes what happens to the multiplier?
A) It falls from 1.49 to 1.25.
B) It rises from 1.25 to 1.49.
C) It falls from 5 to 3.
D) It rises from 3 to 5.
Correct Answer:
Verified
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