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AE Model: Private Closed Economy
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AE Model: Private Closed Economy
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16. Deriving the Aggregate Expenditures Model / AE Model: Private Closed Economy / Problem 1
Problem 1
If the base level of consumption increases by \$10 billion, how will this affect the aggregate expenditures line?
A
The line will shift downward by \$10 billion.
B
The line will shift upward by \$10 billion.
C
The slope of the line will increase.
D
The slope of the line will decrease.
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