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    Exam 11: Expenditure Multipliers: They Keynesian Model
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    Suppose That the Slope of the AE Curve Is 0
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Suppose That the Slope of the AE Curve Is 0

Question 337

Question 337

Multiple Choice

Suppose that the slope of the AE curve is 0.75. Then a $100 increase in autonomous spending causes equilibrium expenditure to


A) decrease by $400.
B) decrease by $750.
C) increase by $750.
D) increase by $400.

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