If a Country Has an Expenditure Multiplier of 10, the Slope

question 139

Multiple Choice

If a country has an expenditure multiplier of 10, the slope of its aggregate planned expenditure (AE) curve is

• A) .10.
• B) .50.
• C) .90.
• D) 10.00.
• E) .80.

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Definitions:

Hypotenuse

The side facing the right angle in a right-angled triangle, known for being the longest.

°

A symbol used to denote degrees in measures of angles, temperature, or quality.

Pythagorean Theorem

A theorem that states that the square of the sides of a right triangle are equal to the square of the hypotenuse.

Hypotenuse

In a right-angled triangle, the longest side, which sits opposite the right angle.