Multiple Choice
Suppose that the MPC is 0.7,there is no investment accelerator,and there are no crowding-out effects.If government expenditures increase by $30 billion,then aggregate demand
A) shifts rightward by $100 billion.
B) shifts rightward by $51 billion.
C) shifts rightward by $170 billion.
D) shifts rightward by $72.8 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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