If net exports fall $40 billion, the MPC is 9/11, and there is a multiplier effect but no crowding out and no investment accelerator, then Selected Answer: c. aggregate demand falls by 11/9 x $40 billion. Answers: a. aggregate demand falls by 2 x $40 billion. b. aggregate demand falls by 11/2 x $40 billion. c. aggregate demand falls by 11/9 x $40 billion. d.aggregate demand falls by 9/11 x $40 billion.
This question was answered on: May 23, 2022
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