Multiple Choice
If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by
A) $80 billion.
B) $125 billion.
C) $400 billion.
D) $500 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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