Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 22

4) If the spending-income multiplier is 4 in the economy depicted, an increase in the money supply from $125 billion to $150 billion will:
A) shift the aggregate demand curve rightward by $20 billion.
B) increase real GDP by $25 billion.
C) increase real GDP by $100 billion.
D) shift the aggregate demand curve leftward by $5 billion.