Assume that the MPC = 0.8 and the government increases spending by $100 billion, financing this spending with a $100 billion tax increase. Which of the following will be the likely effect of this action? A. Real GDP will contract by $200 billion. B. Real GDP will contract by $100 billion. C. Real GDP will expand by $500 billion. D. Real GDP will expand by $400 billion. E. Real GDP will expand by $100 billion.