If the MPC Is 0

question 1

Multiple Choice

If the MPC is 0.8 and there are no crowding-out or accelerator effects,then an initial increase in aggregate demand of $120 billion will eventually shift the aggregate demand curve to the right by

• A)$216 billion.
• B)$150 billion.
• C)$600 billion.
• D)$480 billion.

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