Multiple Choice
Given a $500 billion AD shortfall and an MPC of 0.75,the desired fiscal stimulus would be
A) A $2 trillion increase in government expenditures.
B) A $375 billion increase in government expenditures.
C) A $500 billion increase in government expenditures.
D) A $125 billion increase in government expenditures.
Correct Answer:
Verified
Correct Answer:
Verified
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