Assume That the MPC Is 0

question 75

Multiple Choice

Assume that the MPC is 0.75.Assuming that only the multiplier effect matters,a decrease in government purchases of $10 billion will shift the aggregate demand curve

• A)left by $13.5 billion.
• B)left by $40 billion.
• C)right by $75 billion.
• D)None of the above is correct.

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