If the MPC in an economy is .8 , government could shift the aggregate demand curve rightward by $100 billion by : a) increasing government spending...

1. If the MPC in an economy is .8 , government could shift the aggregate demand curve rightward by $100 billion by :a) increasing government spending by $80 billionb) increasing government spending by $25 billionc ) decreasing taxes by $100 billiond) decreasing taxes by $ 25 billion2. In an aggregate expenditure diagram a lump-sum tax (T) will :a)shift the C+Ig+Xn line upward by an amount equal Tb)shift the C+Ig+Xn line downward by an amount equal Tc)not affect the C+Ig+Xn lined) Shift the C+Ig+Xn line downward by an amount equal to T x MPC3 . Capital Goods , because their purchase can be postpone like ______ consumer goods , tend to contribute to ______ in investment spending.a) nondurable ; instability