If the MPC in an economy is .8, government could shift the aggregate demand curve rightward by $100 billion by:. a. decreasing taxes by $25 billion.
b. increasing government spending by $25 billion.
c. increasing government spending by $80 billion.
d. decreasing taxes by $100 billion.

Explanation:

Step 1

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2

Compute the net present value to make decision for buying the new Backhoes or keeping the old