Multiple Choice
Assume that the MPC is 0.75.Assuming that only the multiplier effect matters,a decrease in government purchases of $10 billion will shift the aggregate demand curve
A) left by $13.5 billion.
B) left by $40 billion.
C) right by $75 billion.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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