Assume the marginal propensity to consume (MPC) is 0.75 and the government increases taxes by $250 billion. The aggregate demand curve will shift to the:
a. left by $1,000 billion.
b. right by $1,000 billion.
c. left by $750 billion.
d. right by $750 billion.
c
Economics
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In the late 1800s and early 1900s, the primary source of energy for manufacturing was
a. coal. b. petroleum. c. water. d. electricity.
Economics
When national income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is
a. 0.2 b. 0.5 c. 0.6 d. 0.67 e. 1.33
Economics