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The slope of the AE curve is .80. What is the multiplier? Everything else the same, by how much does equilibrium aggregate expenditure increase if
a) exports increase from $1.75 trillion to $2.25 trillion.
b) government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion.
c) investment increases from $1.2 trillion to $2.3 trillion.
Guaranteed Minimum
The lowest amount assured by a contract, regardless of external conditions or outcomes.
Annual Rates
Refers to the interest rate or growth rate over a one-year period, often used in financial contexts.
Strip Bond
A financial instrument resulting from the separation of the coupon payments and the principal of a regular bond, where each part is sold separately as a zero-coupon bond.
Market Yield
The return on investment for a security anticipated in the marketplace, reflecting its current price and income it generates.
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