Assume the MPC Is 0

question 103

Multiple Choice

Assume the MPC is 0.8.Assuming only the multiplier effect matters,a decrease in government purchases of $100 billion will shift the aggregate demand curve to the

• A)left by $180 billion.
• B)left by $500 billion.
• C)right by $180 billion.
• D)right by $400 billion.

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