Fiscal Policy options to address a recessionary gap:

Suppose the economy's MPC is 0.80

1. If the government increases spending by $200 billion, what will the cumulative increase in AD be equal to?
2. If the government decreases taxes by $200 billion, what will the cumulative increase in AD be equal to?
3. Does a given increase in government spending have a greater or less impact on AD than a given decrease in taxes? Why?