The Smaller the Slope of the Aggregate Planned Expenditure (AE)

question 141

Multiple Choice

The smaller the slope of the aggregate planned expenditure (AE) curve, the

• A) larger the expenditure multiplier.
• B) smaller the expenditure multiplier.
• C) larger is the marginal tax rate.
• D) larger are imports.
• E) larger are exports.

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Definitions:

Service Fees

Charges for professional services provided by businesses to their customers.

Rent Expense

The cost incurred by a business to utilize property or equipment for business operations.

Revenue Closed

A term not commonly used in accounting standards. NO.

Owner's Capital

The amount of money and other assets invested in a business by its owner(s), which represents the owner’s claim against the company's assets.