c. reduces investment and thereby increases consumer spending. OO d. increases the money supply and thereby reduces interest rates. QUESTION 31 If the MPC is 0.50 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $135 billion will eventually shift the aggregate demand curve to the right by a. $216 billion. b. $270 billion. OOOO c. $480 billion. d. $150 billion