Question: Assume the MPC is 0 . 6 2 5 . Assume there is a multiplier effect and that the total crowding - out effect is

Assume the MPC is 0.625. Assume there is a multiplier effect and that the total crowding-out effect is $12 billion.
An increase in government purchases of $30 billion will shift aggregate demand to the
a. right by $68 billion.
b. left by $60 billion.
c. left by $36 billion.
d. right by $36 billion.
Assume the MPC is 0 . 6 2 5 . Assume there is a

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