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

Question

Quizplus · Accepted Answer

A larger slope of the AE (Aggregate Expenditure) curve indicates a higher marginal propensity to consume, which results in a larger multiplier effect.

The Larger the Slope of the AE Curve, the