If the MPC = 3/4, an increase in government purchases of $40 billion will ultimately lead to:
A) a $160 billion increase in aggregate demand.
B) a $40 billion increase in aggregate demand.
C) a $30 billion increase in aggregate demand.
D) a $30 billion decrease in aggregate demand.
Correct Answer:
Verified
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Q58: If MPC = 0.75, a $40 billion
Q59: Which of the following is true?
A)The tax
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