Business, 19.12.2019 03:31 teresaparraz34

The multiplier effect of fiscal policy predicts that an increase in government spending of $150 billion will increase total income by $750.00 billion if the marginal propensity to consume is 0.80.
if we account for crowding-out, then the increase in aggregate demand will be:

a. more than $750.00 billion.
b. less than $750.00 billion.
c. exactly $750.00 billion.
d. none of these

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The multiplier effect of fiscal policy predicts that an increase in government spending of $150 bill...