Multiple Choice
If the MPC is 0.8 and there are no crowding-out or accelerator effects,then an initial increase in aggregate demand of $120 billion will eventually shift the aggregate demand curve to the right by
A) $216 billion.
B) $150 billion.
C) $600 billion.
D) $480 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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