Use the figure below to answer the following questions.

Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1. The slope of the AE curve is
A)0.75.
B)0.25.
C)0.50.
D)0.67.
E)1.33.

Question

Use the figure below to answer the following questions.
  
Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C)and investment (I).
-Refer to Figure 27.3.1. The slope of the AE curve is
A)0.75. 
B)0.25. 
C)0.50. 
D)0.67. 
E)1.33.

Quizplus · Accepted Answer

The slope of the AE (Aggregate Expenditure) curve is determined by the marginal propensity to consume (MPC), which is typically given as 0.75 in many economic models.

Use the Figure Below to Answer the Following Questions