Multiple Choice
Assume the marginal propensity to consume (MPC) is 0.75 and the government increases taxes by $250 billion. The aggregate demand curve will shift to the:
A) left by $1,000 billion.
B) right by $1,000 billion.
C) left by $750 billion.
D) right by $750 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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