Suppose the federal government decides to decrease its spending on national defense by $90 billion. Assume the MPC for the US economy is 0.80 . What TYPE of government spending is this? Spending on a good, service and/or public capital project Spending on an income transfer program Suppose the federal government decides to decrease its spending on national defense by $90 billion. Assume the MPC for the US economy is 0.80 . What impact will this change in government policy have on America's Aggregate Demand (AD)? America's AD will increase America's AD will decrease Suppose the federal government decides to decrease its spending on national defense by $90 billion. Assume the MPC for the US economy is 0.80 . The change in America's AD will be $ _._ billion