The Smaller the Slope of the AE Curve

question 267

Multiple Choice

The smaller the slope of the AE curve, .

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

---

Definitions:

Investee Earnings

Represents the portion of profits or losses from investments in other entities that the investing company includes in its own financial statements.

Voting Common Stock

A type of equity security that grants its holders the right to vote on corporate policies and the election of the board of directors.

Consolidation Accounting

A method of accounting in which the financial statements of a parent company and its subsidiaries are combined to present a single economic entity.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote and share in profits through dividends.