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If Investment Increases by $150 And, in Response, Equilibrium Expenditure

Question 332

Multiple Choice

If investment increases by $150 and, in response, equilibrium expenditure rises by $600

A) the multiplier is 0.25.
B) the multiplier is 4.0.
C) the MPC is 4.
D) the slope of the AE curve is 3.0.

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