If Net Exports Fall $40 Billion,the MPC Is 9/11,and There

question 14

Multiple Choice

If net exports fall $40 billion,the MPC is 9/11,and there is a multiplier effect but no crowding out and no investment accelerator,then

• A)aggregate demand falls by 2 x $40 billion.
• B)aggregate demand falls by 11/2 x $40 billion.
• C)aggregate demand falls by 11/9 x $40 billion.
• D)aggregate demand falls by 9/11 x $40 billion.

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