Multiple Choice
If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion at each price level by:
A) increasing government spending by $25 billion.
B) increasing government spending by $80 billion.
C) decreasing taxes by $25 billion.
D) decreasing taxes by $100 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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