If the Government Wishes to Increase Its Spending on Goods

Multiple Choice

If the government wishes to increase its spending on goods and services by $10 billion without increasing the overall level of aggregate demand,it should

A) increase taxes by $10 billion.
B) decrease taxes by $10 billion.
C) increase taxes by more than $10 billion.
D) increase taxes,but by less than $10 billion.
E) leave tax receipts unchanged.