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.

Question

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The Answer of 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.

In an Economy, the Government Wants to Increase Aggregate Demand