If the MPC in an economy is .6, the government could shift the aggregate demand curve to the right by $50 billion by:       reducing worthless government expenditures by $125 billion.       reducing worthless government expenditures by $20 billion.       increasing taxes by $50 billion.       increasing worthless government expenditures by $20 billion.       None of the available are correct

MACROECONOMICS FOR TODAY
10th Edition
ISBN:9781337613057
Author:Tucker
Publisher:Tucker
Chapter13: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
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If the MPC in an economy is .6, the government could shift the aggregate demand curve to the right by $50 billion by:

 

   

reducing worthless government expenditures by $125 billion.

 

   

reducing worthless government expenditures by $20 billion.

 

   

increasing taxes by $50 billion.

 

   

increasing worthless government expenditures by $20 billion.

 

   

None of the available are correct

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