Multiple Choice
If the MPS in an economy is .1, government could shift the aggregate demand curve rightward by $40 billion at each price level by:
A) increasing government spending by $4 billion.
B) increasing government spending by $40 billion.
C) decreasing taxes by $4 billion.
D) increasing taxes by $4 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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