Question 18 (2 points) An increase in lump-sum taxes will: make the aggregate demand function flatter. make the aggregate demand function steeper. Oshift the aggregate demand function downward. shift the aggregate demand function upward. Question 19 (2 points) Taxes are reduced by $50 billion and income increases by $100 billion. The value of the tax multiplier is: O-5 -0.5 -2 O Cannot be determined from this information, because the MPC and the progressive/marginal tax rate are not given. Question 20 (2 points) If the tax multiplier is -7 and taxes are increased by $35 billion, output: falls by $5 billion falls by $245 billion increases by $35 billion Oincreases by $5 billion