Economics for Today 7th Edition by Irvin Tucker

تمرين 8

If no fiscal policy changes are implemented, suppose the future aggregate demand curve will exceed the current aggregate demand curve by $500 billion at any level of prices. Assuming the marginal propensity to consume ( MPC ) is 0.80, this increase in aggregate demand could be prevented by
A) increasing government spending by $500 billion.
B) increasing government spending by $140 billion.
C) decreasing taxes by $40 billion.
D) increasing taxes by $125 billion.