If Investment Increases by $150 And, in Response, Equilibrium Expenditure

question 282

Multiple Choice

If investment increases by $150 and, in response, equilibrium expenditure rises by $600,

• A) the MPC is 4.
• B) the multiplier is 0.25.
• C) the slope of the AE curve is 3.0.
• D) the multiplier is 4.0.

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Definitions:

Polynomial

An algebraic expression consisting of terms in the form of ax^n where a is the coefficient, x is the variable, and n is a non-negative integer.

Monomial

An algebraic expression consisting of a single term, which can be a constant, a variable, or multiples of variables and constants.

Sum

The result obtained by adding two or more numbers or expressions.

Sum

The result of adding two or more numbers or expressions together.