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:

Shotgun-Shell Ammunition

Ammunition specifically designed for use in a shotgun, consisting of a casing filled with shot or a slug.

Future Prices

The anticipated cost of goods, commodities, or services set for delivery and payment at a future date.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices.

Complements

Goods that are often used together where an increase in the demand for one leads to an increase in the demand for the other.