Multiple Choice
In an economy, the government wants to increase aggregate demand by $60 billion at each price level to increase real GDP and reduce unemployment.If the MPC is .9, then it could:
A) decrease taxes by $6 billion.
B) decrease taxes by $12 billion.
C) increase government spending by $6 billion.
D) increase government spending by $12 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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