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If the marginal propensity to consume is 0.75 and the fiscal policy goal is to increase real national income by $100 billion, then


A) government spending needs to increase by $25 billion.
B) government spending needs to increase by $100 billion.
C) saving needs to increase by $25 billion.
D) saving needs to increase by $100 billion.

E) B) and D)
F) A) and D)

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