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If the MPC in an Economy Is 0

Question 36

Multiple Choice

If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by


A) reducing government expenditures by $12 billion.
B) reducing government expenditures by $60 billion.
C) increasing taxes by $15 billion.
D) increasing taxes by $20 billion.

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