Recall that the Keynesian spending multiplier equals 1/ (1 - MPC). Suppose that in Figure 13-4, the

Question:

Recall that the Keynesian spending multiplier equals 1/ (1 - MPC). Suppose that in Figure 13-4, the MPC is equal to 0.9. In addition, the amount of the horizontal leftward shift from AD2 to AD3 caused by a crowding-out effect on planned investment spending was $0.5 trillion, or $500 billion. How much investment spending was crowded out?