Economics for Today 7th Edition by Irvin Tucker

تمرين 9

Suppose inflation is a threat because the current aggregate demand curve will increase by $600 billion at any price level. If the marginal propensity to consume ( MPC ) is 0.75, federal policymakers could follow Keynesian economics and restrain inflation by
A) decreasing taxes by $600 billion.
B) decreasing transfer payments by $200 billion.
C) increasing taxes by $200 billion.
D) increasing government spending by $150 billion.