If the Consumption Function Is C = 200 + 0

question 176

Multiple Choice

If the consumption function is C = 200 + 0.75Y and there is a $10 million increase in consumption spending, then the aggregate demand curve will shift horizontally to the right by:

• A) $750 million.
• B) $7.5 million.
• C) $75 million.
• D) $40 million.

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