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    Exam 11: Expenditure Multipliers
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    The Slope of the AE Curve Is 0
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The Slope of the AE Curve Is 0

Question 185

Question 185

Multiple Choice

The slope of the AE curve is 0.9. Investment decreases by $100 million and the price level is constant. Real GDP


A) decreases by $10 million.
B) increases by $90 million.
C) decreases by $1 billion.
D) increases by $1 billion.

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