Question
I am resubmitting this as the previous tutor did not provide the working out of how to come to the answer. I need to know
I am resubmitting this as the previous tutor did not provide the working out of how to come to the answer. I need to know how to reach the answer on my own so I'm hoping you will work out the question step by step so I can rework it and check my work. Thank you in advance for you time and assistance.
If the MPS in an economy is 0.5, government could shift the aggregate demand curve leftward by $20 billion by
a)reducing government expenditures by $10 billion.
b)reducing government expenditures by $40 billion.
c)increasing taxes by $20 billion.
d)increasing taxes by $80 billion.
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