The Smaller the Slope of the AE Curve, _

question 305

Multiple Choice

The smaller the slope of the AE curve, _ .

• A) the smaller is slope of the saving function
• B) the smaller is the value of the multiplier
• C) the greater is the value of the multiplier
• D) the steeper is the consumption function

---

Definitions:

Reinvesting

The process of using dividends, interest, or profits from investments to purchase additional shares or units instead of taking the earnings as cash.

Activist Investors

Investors who use their equity stake in a corporation to influence its management or operations, often pushing for financial or structural changes.

Controlling Interest

Ownership of a sufficient portion of a firm's stock (typically over 50%) to dictate policies and management decisions.

Financial Performance

An assessment of how well a business generates revenues and manages its expenses, assets, and liabilities.