Suppose that for every $1 increase in autonomous investment, real GDP demanded rises by $5. Which of the following must be true?
a. The line of aggregate expenditure exactly matches the line of equilibrium.
b. Noninvestment expenditures increase with every increase in investment spending.
c. The point of equilibrium will decrease with every increase.
d. The slope of the aggregate expenditure curve is 5.
b. Noninvestment expenditures increase with every increase in investment spending.
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