Question: Question 8 : Assume the MPC is 0 . 6 . Assume there is a multiplier effect and that the crowding - out effect is

Question 8:
Assume the MPC is 0.6. Assume there is a multiplier effect and that the crowding-out effect is $10 billion. An increase in government purchases of $20 billion will shift aggregate demand to the
a. left by $10 billion
b. left by $30 billion
c. right by $50 billion
d. right by $40 billion
Question 8 : Assume the MPC is 0 . 6 . Assume

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