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  3. Study Set
    Macroeconomics Study Set 68
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    Exam 12: Aggregate Demand and Aggregate Supply
  5. Question
    If Investment Decreases by $20 Billion and the Economy's MPC
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If Investment Decreases by $20 Billion and the Economy's MPC

Question 2

Question 2

Multiple Choice

If investment decreases by $20 billion and the economy's MPC is 0.5, the aggregate demand curve will shift


A) leftward by $40 billion at each price level.
B) rightward by $20 billion at each price level.
C) rightward by $40 billion at each price level.
D) leftward by $20 billion at each price level.

Correct Answer:

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