Multiple Choice
Assume the MPC is 0.65.Assuming only the multiplier effect matters,a decrease in government purchases of $20 billion will shift the aggregate demand curve to the
A) left by about $30.77 billion.
B) left by about $57.1 billion.
C) right by about $57.1 billion.
D) right by about $30.77 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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