If R is grander than R*, then: a) inflation in the U.K. exceeds inflation in the U.S. b) the percentage change of the exchange rate is negative c) the pound appreciates d) none of the aboveExam 2 Eco 212 Section U Spring 2024 1) Assume that the marginal propensity to consume is 2/3 (0.667) in a Keynesian model. If government spending increases by $120 billion, the increase in GDP is: a) 360 billion b) 240 billion c) 180 billion d) 160 billion 2) A cut in taxes of $120 billion under the conditions of question 1 will increase GDP by: a) 200 billion b) 240 billion c) 280 billion d) 320 billion e) 360 billion