(Choose 1 answer)
(18064) Assume the MPC is 0.75. Assuming only the multiplier effect matters, a decrease in government purchases of $100 billion will shift the aggregate demand curve to the
A. (i) left by $200 billion.
B. (ii) left by $400 billion.
C. (iii) right by $800 billion.
D. None of (i), (ii), and (iii) is correct.
