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Suppose That Last Year the Slope of the AE Curve

Question 152

Multiple Choice

Suppose that last year the slope of the AE curve was 0.67 and this year the slope of the AE curve changed to 0.8. Which of the following best describes what happens to the multiplier?


A) It rises from 3 to 5.
B) It falls from 5 to 3.
C) It rises from 1.25 to 1.49.
D) It falls from 1.49 to 1.25.

Correct Answer:

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