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How Is the AE Function Placed onto the 45 \circ Graph?
A)It Starts at Zero Income and Rises with

Question 118

Multiple Choice

How is the AE function placed onto the 45 \circ 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.

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