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If the MPS in an economy is 0.25, government could shift the aggregate demand curve rightward by $64 billion by Multiple Choice increasing government spending

If the MPS in an economy is 0.25, government could shift the aggregate demand curve rightward by $64 billion by

Multiple Choice

  • increasing government spending by $16 billion.
  • increasing government spending by $64 billion.
  • decreasing taxes by $16 billion.
  • increasing taxes by $16 billion.

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