Question
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
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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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
