Narrbegin Exhibit 17.3
-According to Exhibit 17.3, if we assume the MPC is 0.8, then a shift in the AD curve from AD0 to AD3 would require an increase in government spending of:
A) $15 billion.
B) $30 billion.
C) $150 billion.
D) greater than $30 billion to allow for inflation.

Question

Narrbegin Exhibit 17.3  
-According to Exhibit 17.3, if we assume the MPC is 0.8, then a shift in the AD curve from AD0 to AD3 would require an increase in government spending of:
A) $15 billion. 
B) $30 billion. 
C) $150 billion. 
D) greater than $30 billion to allow for inflation.

Quizplus · Accepted Answer

The Answer of Narrbegin Exhibit 17.3  
-According to Exhibit 17.3, if we assume the MPC is 0.8, then a shift in the AD curve from AD0 to AD3 would require an increase in government spending of:
A) $15 billion. 
B) $30 billion. 
C) $150 billion. 
D) greater than $30 billion to allow for inflation.