In the Short-Run Keynesian Model Where the Marginal Propensity to Consume
In the short-run Keynesian model where the marginal propensity to consume is 0.75,to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption,taxes must be:
A)increased by $1 billion.
B)decreased by $1 billion.
C)increased by $1.33 billion.
D)decreased by $1.33 billion.