If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion at each price level by:
A)increasing government spending by $25 billion.
B)increasing government spending by $80 billion.
C)decreasing taxes by $25 billion.
D)decreasing taxes by $100 billion.

Question

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The Answer of If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion at each price level by:
A)increasing government spending by $25 billion.
B)increasing government spending by $80 billion.
C)decreasing taxes by $25 billion.
D)decreasing taxes by $100 billion.

If the MPC in an Economy Is