Households reduce their spending by 30% (from $100,000 total to $70,000), while firms reduce their investment expenditure by 60% (from $50,000 to $20,000). First, explain why it's likely that households will reduce their overall spending by a smaller percentage than firms. Next, calculate the collective effect of these reductions in spending on GDP, if you also know that the MPC is 75%, that there is no government spending, and Taxes are equal to zero