A. The Government increases government spending by $1 billion on goods and services, $3 billion on increased subsidies of pre-school children and increases taxes by $2.5 billion. What is the net effect of these changes if the marginal propensity to withdraw is 20 percent? (repeat the exercise if the MPW is 60%). B. Had the government wanted to get the same impact through buying goods and services, what would it have to increase the spending on goods and services. Show your work and your answer. c. In a paragraph or two what other impacts (positive or negative) might this decision have on the economy