If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30 billion by Multiple Choice decreasing taxes by $20 billion. increasing government spending by $20 billion. increasing government spending by $18 billion. decreasing taxes by $30 billion.

If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30 billion by Multiple Choice decreasing taxes by $20 billion. increasing government spending by $20 billion. increasing government spending by $18 billion. decreasing taxes by $30 billion.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter21: Fiscal Policy

Section: Chapter Questions

Problem 19SQ

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Question

If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30 billion by

Multiple Choice

decreasing taxes by $20 billion.
increasing government spending by $20 billion.
increasing government spending by $18 billion.
decreasing taxes by $30 billion.

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