If the MPC Is 0

question 405

Multiple Choice

If the MPC is 0.75 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $100 billion will eventually shift the aggregate demand curve to the right by

• A)$80 billion.
• B)$125 billion.
• C)$400 billion.
• D)$500 billion.

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