Assume that the MPC is 0.8. Assume that there is a multiplier effect and that the total crowding-out effect is $8 billion. How will an increase in government purchases of $10 billion shift aggregate demand?

a.It will shift aggregate demand right by $42 billion.

b.It will shift aggregate demand right by $2 billion.

c.It will shift aggregate demand left by $42 billion.

d.It will shift aggregate demand left by $2 billion.