If the MPC is 0.6, then a 50-unit rise in taxes and a 50-unit rise in

If the MPC is 0.6, then a 50-unit rise in taxes and a 50-unit rise in government spending will shift the IS curve

a. to the right by 50 units.
b. to the right by 75 units.
c. to the left by 125 units.
d. to the left by 75 units.

 

ANSWER

A

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