Otherwise have spent on road construction

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Reference no: EM13800867

If the government decides to spend an extra $5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD?

A. It has no effect.

B. It increases by $5 billion.

C. It increases by $15 billion.

D. It increases by $20 billion.

Reference no: EM13800867

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