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Assume that in 2019 a person received a raise of $4,000 to their annual salary. In 2019, the Marginal Propensity to Consume (MPC) was 0.75

Assume that in 2019 a person received a raise of $4,000 to their annual salary. In 2019, the Marginal Propensity to Consume (MPC) was 0.75 and the Marginal Propensity to Withdraw (MPW) was 0.25. What impact did the raise have on Aggregate Demand in 2019? (Choose the closest correct answer)

a.Aggregate demand increased by $12,000.

b.Aggregate demand increased by $5,320.

c.Aggegate Dmand increased by $8,000.

d.Aggregate Demand increased by $16,000..

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