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Answer :
In this case, the change in aggregate demand is $21 billion, and none of the provided options match this value.
The change in aggregate demand can be calculated using the formula:
Change in Aggregate Demand = Change in Government Expenditure * MPC
In this case, the change in government expenditure is $35 billion and the MPC (Marginal Propensity to Consume) is 6/10 or 0.6.
Using the formula, we can calculate the change in aggregate demand:
Change in Aggregate Demand = $35 billion * 0.6
= $21 billion
Therefore, the change in aggregate demand will be $21 billion.
Since none of the given options match this value, none of the options provided in the question are correct.
To know more about aggregate demand, refer to the link below:
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