If the government decides to spend an extra $5 billion on health care that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD? a. It has no effect.
b. It increases by $5 billion.
c. It increases by $15 billion.
d. It increases by $20 billion.
DATE
Question answered on Jul 22, 2018
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Solution~000637825.zip (18.37 KB)
