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Question 19 of 20 Assuming that the MPC = .75 and that prices are constant, which of the following scal policies would eliminate a recessionary

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Question 19 of 20 Assuming that the MPC = .75 and that prices are constant, which of the following scal policies would eliminate a recessionary gap of $60 billion while maintaining a balanced budget? 0 A. Increasing government spending by $60 billion while raising taxes $60 billion. 0 B. Increasing government spending by $60 billion while raising taxes $80 billion. 0 C. Decreasing government spending by $60 billion while raising taxes $80 billion. 0 D. Increasing government spending by $60 billion while reducing taxes $80 billion. 0 E. Decreasing government spending by $60 billion while reducing taxes $60 billion

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