Given MPC (marginal propensity to consume) = 0.75, if the government implements an expansionary fiscal policy as

(a)cutting taxes by $10 billion, then by how much would total spending increase over an infinite period?

(b)spending $10 billion, then by how much would total spending increase over an infinite period?

____________

(c)How large is the money multiplier when the required reserve ratio is 0.125?

(d)If the required reserve ratio increases to 0.20, what happens to the money multiplier?