Economics for Today 7th Edition by Irvin Tucker

تمرين 4

Assume the economy is in recession and real GDP is below full employment. The marginal propensity to consume ( MPC ) is 0.80, and the government increases spending by $500 billion. As a result, aggregate demand will rise by
A) zero.
B) $2,500 billion.
C) more than $2,500 billion.
D) less than $2,500 billion.