Multiple Choice
If the MPS in an economy is .4, government could shift the aggregate demand curve leftward by $50 billion at each price level by:
A) reducing government expenditures by $125 billion.
B) reducing government expenditures by $20 billion.
C) increasing taxes by $50 billion.
D) increasing taxes by $250 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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