Assume the MPC Is 0

Multiple Choice

Assume the MPC is 0.625. Assuming only the multiplier effect matters, a decrease in government purchases of $10 billion will shift the aggregate demand curve to the

A) left by about $13.3 billion.
B) left by about $26.7 billion.
C) right by about $36.7 billion.
D) None of the above is correct.