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If Investment Increases by $200, and as a Result Income

Question 105

Multiple Choice

If investment increases by $200, and as a result income increases by $800, then the


A) multiplier is 1/4.
B) slope of the AE curve is 0.75.
C) slope of the AE curve is 1/4.
D) multiplier is 3.
E) none of the above

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