In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and control demand-pull…

In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and control demand-pull inflation. If the MPC is .75, then it could increase taxes by:

A. $6 billion

B. $8 billion

C. $10 billion

D. $12 billion

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