Multiple Choice
Assume the marginal propensity to consume (MPC) is 0.80 and the government cuts taxes by $100 billion. The aggregate demand curve will shift to the:
A) right by $80 billion.
B) left by $200 billion.
C) right by $400 billion.
D) left by $400 billion.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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