If the MPC Is 0

question 43

Multiple Choice

If the MPC is 0.80 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) $500 billion.
• D) $800 billion.

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