2. Assume that taxes and interest rates remain unchanged when government spending increases, and that both savings and consumer spending increase when income increases. The ultimate effect on real GDP of a $100 million increase in government purchases of goods and services will be

a. an increase of $100 million.

b. an increase of more than $100 million.

c. an increase of less than $100 million.

d. an increase of either more than or less than $100 million, depending on the MPC.

e. a decrease of $100 million.