In general, the steeper the aggregate expenditure curve, the
A) greater the value of autonomous expenditure.
B) lower the marginal propensity to consume.
C) larger the multiplier.
D) smaller the multiplier.

Question

Quizplus · Accepted Answer

The steeper the aggregate expenditure curve, the larger the multiplier. This is because a steeper curve indicates a higher marginal propensity to consume, which in turn leads to a larger multiplier effect on the economy.

In General, the Steeper the Aggregate Expenditure Curve, the