12. If no fiscal policy changes are implemented to fight inflation, suppose the aggregate demand curve will exceed the current aggregate demand curve by

$900 billion at any level of prices. Assuming the marginal propensity to consume is 0.90, this increase in aggregate demand could be prevented by

a. increasing government spending by $500 billion.

b. increasing government spending by $140 billion.

c. decreasing taxes by $40 billion.

d. increasing taxes by $100 billion.