Multiple Choice
How is the AE function placed onto the 45 graph?
A) It starts at zero income and rises with a slope equal to the MPE.
B) It starts on the vertical axis at the level of autonomous expenditures and rises with a slope equal to the MPE.
C) It starts at zero income and falls with a slope equal to the MPE.
D) It starts on the vertical axis at the level of autonomous expenditures and falls with a slope equal to the MPE.
Correct Answer:

Verified
Correct Answer:
Verified
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