If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by:( please explain as well ) A) reducing government expenditures by $12 billion. B) reducing government expenditures by $60 billion. C) increasing taxes by $15 billion. D) increasing taxes by $20 billio
If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by:( please explain as well ) A) reducing government expenditures by $12 billion. B) reducing government expenditures by $60 billion. C) increasing taxes by $15 billion. D) increasing taxes by $20 billio
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 6SQ
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- If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by:( please explain as well )
- A) reducing government expenditures by $12 billion.
- B) reducing government expenditures by $60 billion.
- C) increasing taxes by $15 billion.
- D) increasing taxes by $20 billion.
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