In the short-run Keynesian model, if the mpc equals 0.8, then to decrease planned aggregate spending by $30 billion at any output level, government spending must be decreased by ________ or net taxes must be increased by ________.
A. $30 billion; more than $30 billion
B. $30 billion; $30 billion
C. more than $30 billion; more than $30 billion
D. less than $30 billion; less than $30 billion
Answer: A
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