If investment decreases by $20 billion and the economy's MPC is .5,the aggregate demand curve will shift:
A) leftward by $40 billion at each price level.
B) rightward by $20 billion at each price level.
C) rightward by $40 billion at each price level.
D) leftward by $20 billion at each price level.
Correct Answer:
Verified
Q2: An increase in net exports will shift
Q3: The determinants of aggregate demand
A) explain why
Q6: Which one of the following would not
Q7: If investment increases by $10 billion and
Q8: The interest-rate effect suggests that
A) a decrease
Q9: The factors that affect the amounts that
Q11: Other things equal, a decrease in the
Q14: The foreign purchases effect suggests that a
Q18: The real-balances, interest-rate, and foreign purchases effects
Q19: The real-balances effect indicates that
A)an increase in
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