If the marginal propensity to consume is 0.9 and the fiscal policy goal is to increase real national income needs to by $200 billion, then
A) taxes need to be increased by $20 billion.
B) government spending needs to increase by $200 billion.
C) government spending needs to increase by $20 billion.
D) saving needs to increase by $20 billion.
Correct Answer:
Verified
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