If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by Multiple Choice increasing taxes by $20 billion. reducing government expenditures by $12 billion. increasing taxes by $15 billion.

If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by Multiple Choice increasing taxes by $20 billion. reducing government expenditures by $12 billion. increasing taxes by $15 billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by

Multiple Choice

increasing taxes by $20 billion.
reducing government expenditures by $12 billion.
increasing taxes by $15 billion.
reducing government expenditures by $60 billion.

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