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    Macroeconomics Study Set 41
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    Exam 11: Expenditure Multipliers: the Keynesian Model
  5. Question
    If the Slope of the AE Curve Increases, the Multiplier
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If the Slope of the AE Curve Increases, the Multiplier

Question 233

Question 233

Multiple Choice

If the slope of the AE curve increases, the multiplier


A) stays the same.
B) decreases.
C) increases.
D) can either increase or decrease depending on what happens to the MPC.

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