Assume the MPC is 0.80. Assume there is a multiplier effect and that the total crowding-out effect is $12 billion. An increase in government purchases of $60 billion will shift aggregate demand to the Oa. right by $288 billion. Ob. left by $288 billion. Oc. left by $240 billion. Od. right by $240 billion.

Assume the MPC is 0.80. Assume there is a multiplier effect and that the total crowding-out effect is $12 billion. An increase in government purchases of $60 billion will shift aggregate demand to the Oa. right by $288 billion. Ob. left by $288 billion. Oc. left by $240 billion. Od. right by $240 billion.