Multiple Choice
In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, the size of the multiplier depends on the
A) 45-degree line.
B) height of the consumption function.
C) slope of the aggregate demand curve.
D) slope of the aggregate expenditures curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: The amount of consumption that takes place
Q33: Use the following to answer questions .<br>Exhibit:
Q34: The slope of the aggregate expenditures curve
Q35: Suppose the consumption function is C =
Q36: The relationship between aggregate expenditures and real
Q38: If consumption is $80 billion when income
Q39: Use the following to answer questions .<br>Exhibit:
Q40: Consider a simple aggregate expenditure model where
Q41: Use the following to answer questions .<br>Exhibit:
Q42: In the aggregate expenditures model, if real