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If the MPC in an economy is 0

Economics

If the MPC in an economy is 0.80, the government could shift the aggregate demand curve leftward by $12 billion by

Multiple Choice

A) increasing taxes by $3 billion.

B) reducing government expenditures by $3 billion.

C) increasing taxes by $2.4 billion.

D) reducing government expenditures by $12 billion.

Option 1

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