The Smaller the Slope of the AE Curve

question 418

Multiple Choice

The smaller the slope of the AE curve,

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

---

Definitions:

Future Value

(1) A payment’s equivalent value at a subsequent date, allowing for the time value of money. (2) The total of principal plus interest due on the maturity date of a loan or investment.

Month-start Payments

Payments that are due at the beginning of each month.

Retirement Plan

A retirement plan is a financial strategy designed to provide individuals with income or support upon retiring from active employment.

Compounded Monthly

Interest calculation method where interest is added to the principal sum at the end of each month, with each following month's interest calculated on the new total.