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    Macroeconomics Study Set 68
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    Exam 13: Fiscal Policy, Deficits, and Debt
  5. Question
    If the MPS in an Economy Is 0
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If the MPS in an Economy Is 0

Question 27

Question 27

Multiple Choice

If the MPS in an economy is 0.1, government could shift the aggregate demand curve rightward by $40 billion by


A) increasing government spending by $4 billion.
B) increasing government spending by $40 billion.
C) decreasing taxes by $4 billion.
D) increasing taxes by $4 billion.

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