(Advanced Analysis) Assume That the MPS Is 0

Multiple Choice

(Advanced analysis) Assume that the MPS is 0.33 in an economy that has an aggregate supply curve with a slope of 1.An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by

A) $30 billion and increase real GDP by $15 billion.
B) $30 billion and increase real GDP by $30 billion.
C) $10 billion and increase real GDP by $30 billion.
D) $10 billion and increase real GDP by $10 billion.