Multiple Choice
If the government decides to spend an extra $5 billion on health care that they would otherwise have spent on road construction and the MPC is 0.75,what is the effect on AD?
A) It has no effect.
B) It increases by $5 billion.
C) It increases by $15 billion.
D) It increases by $20 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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