If equilibrium real GDP falls short of full-employment (natural) real GDP by $60 million when the MPC = 0.

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If equilibrium real GDP falls short of full-employment (natural) real GDP by $60 million when the MPC = 0.75, which of the following would eliminate the recessionary gap that exists according to the Keynesian model?

A. Increase G by $15 million

B. Decrease T by $20 million

C. Increase both G and T by $60 million

D. Any of the above

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