Assume That the MPC Is 0

question 52

Multiple Choice

Assume that the MPC is 0.8. Assume that the total crowding-out effect is $25 billion. How will an increase in government purchases of $9 billion shift the AD curve?

• A)It will shift the AD curve right by $25 billion.
• B)It will shift the AD curve left by $25 billion.
• C)It will shift the AD curve right by $20 billion.
• D)It will shift the AD curve left by $20 billion

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Definitions:

Team Expertise

The collective skills, knowledge, and experience possessed by a group working together towards a common goal.

Vroom-Jago Leadership Model

A leadership model that emphasizes on decision making and identifies how different leadership styles can be best matched to decision-making situations.

Effectiveness of Implementation

The degree to which strategies or plans are successfully executed to achieve desired outcomes.

Team Support

Assistance, encouragement, and resources provided to a group of individuals working together towards a common goal.