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

question 116

Multiple Choice

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

• A)multiplier is 3.
• B)slope of the AE curve is 1/4.
• C)multiplier is 1/4.
• D)slope of the AE curve is 0.75.
• E)marginal propensity to consume is 0.75.

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