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When the MPC is .75, a decrease in net taxes of $100 billionwill increase the equilibrium level of real GDP by a. $75 billion b.

When the MPC is .75, a decrease in net taxes of $100 billionwill increase the equilibrium level of real GDP by

a. $75 billion

b. $100 billion

c. $300 billion

d. $400 billion

Please explain and provide a formula for questions like this ifapplicable.

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