If the Marginal Propensity to Consume Is 0

Multiple Choice

If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding out, a $115 billion increase in government expenditures would shift the aggregate demand curve right by

A) $460 billion, but the effect would be larger if there were an investment accelerator.
B) $460 billion, but the effect would be smaller if there were an investment accelerator.
C) $345 billion, but the effect would be larger if there were an investment accelerator.
D) $345 billion, but the effect would be smaller if there were an investment accelerator.