Assume the MPC Is 0

Multiple Choice

Assume the MPC is 0.75. Assume there is a multiplier effect and that the total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to the

A) left by $24 billion.
B) left by $36 billion.
C) right by $34 billion.
D) right by $36 billion.