Assume that theMPCis 0.8. Assume that the total crowding-out effect is $25 billion. How will an increase in government purchases of $9 billion shift the AD curve?

Select one:

It will shift the AD curve right by $25 billion.

It will shift the AD curve left by $25 billion.

It will shift the AD curve right by $20 billion.

It will shift the AD curve left by $20 billion.