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    Macroeconomics Study Set 41
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    Exam 11: Expenditure Multipliers: the Keynesian Model
  5. Question
    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 260

Question 260

Multiple Choice

Suppose that the slope of the AE curve is 0.67. Then a $100 decrease in autonomous spending means equilibrium expenditure will


A) increase by $200.
B) decrease by $300.
C) decrease by $200.
D) increase by $300.

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