If MPC = 2/3, a decrease in government purchases of $10 billion will ultimately lead to:

a. a $30 billion increase in aggregate demand.
b. a $10 billion increase in aggregate demand.
c. a $10 billion decrease in aggregate demand.
d. a $30 billion decrease in aggregate demand.

d

Economics

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A stock mutual fund's primary advantage is to allow

A) investors to diversify away systematic risk. B) investors to diversify away all risk. C) investors to diversify away idiosyncratic risk. D) the rich to avoid taxes.

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Which of the following are examples of injections?

a. government purchases, net taxes and exports b. government purchases, investment spending and exports c. net taxes, imports and household saving d. household saving, imports and government purchases e. exports, imports and household saving

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