In an economy with full employment, the marginal propensity to consume of pensioners exceeds that of taxpayers. Government expenditure on pensions falls by $20 billion. In order to keep full employment, taxation must be
- Aincreased by more than $20 billion.
- Bincreased by less than $20 billion.
- Creduced by less than $20 billion.
- Dreduced by more than $20 billion.