1.Suppose that both Canada and Mexico decide to increase government spending. In Canada, the increase is the equivalent of $100 billion. In Mexico, the increase is the equivalent of $50 billion. In Canada, the marginal propensity to consume is 0.20. In

Mexico, the marginal propensity to consume is 0.60. Assume no crowding out.

(a)(1 point) In which country will the aggregate demand curve move further to the

right?

(b)(1 point) In the country in which aggregate demand moves further to the right, byhow much will it move?