If government purchases increase by $10 billion and the economy's MPC is .8, the aggregate demand curve will shift ________.
A. leftward by $40 billion at each price level
B. leftward by $50 billion at each price level
C. rightward by $50 billion at each price level
D. rightward by $10 billion at each price level
Answer: C
Economics
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a. True b. False Indicate whether the statement is true or false
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