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

question 58

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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Definitions:

Supply and Demand Conditions

The economic factors that affect the availability of goods and services (supply) and the desire of consumers to buy them (demand), influencing their prices.

Customary Price Level

The usual or expected price range for goods or services in a particular market or industry.

Special Promotion

A marketing strategy that involves temporary deals or offerings designed to boost sales or consumer interest in a product or service.

National Supermarket Chain

A large retail chain that operates multiple supermarket locations across an entire country, offering a wide range of food and household products.