Assume That the MPC Is 0

question 67

Multiple Choice

Assume that the MPC is 0.8. Assuming that only the multiplier effect matters, how will a decrease in government purchases of $15 billion shift the aggregate demand curve?

• A)It will shift the aggregate demand curve left by $12 billion.
• B)It will shift the aggregate demand curve left by $15 billion.
• C)It will shift the aggregate demand curve right by $15 billion.
• D)It will shift the aggregate demand curve left by $75 billion.

Understand the role of a leader in facilitating team objectives through task assignment.

Comprehend techniques for enhancing teamwork and group decision-making quality.

Grasp the concept and practical application of force field analysis in organizational change.

Recognize the relevance of appreciative inquiry beyond marketing.

---

Definitions:

Garment Manufacturing

The process of converting fabric into clothing through a series of operations like cutting, stitching, and finishing.

Treasury Bills

Short-term debt obligations the U.S. government sells to raise money.