If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by Multiple Choice *increasing taxes by $12 billion *Reducing government expenditures by $4 billion *Increasing taxes by $9.6 billion *reducing government expenditures by $48 billion.

If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by Multiple Choice increasing taxes by $12 billion Reducing government expenditures by $4 billion Increasing taxes by $9.6 billion reducing government expenditures by $48 billion.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter21: Fiscal Policy

Section: Chapter Questions

Problem 19SQ

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Question

If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48 billion by

Multiple Choice

*increasing taxes by $12 billion

*Reducing government expenditures by $4 billion

*Increasing taxes by $9.6 billion

*reducing government expenditures by $48 billion.

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