If the government used counter-cyclical policy to eliminate an inflationary gap, what should it do? a. Increase its own spending and tax rates. b. Increase its own spending but leave tax rates unchanged. c. Increase its own spending or decrease tax rates. d. Decrease its own spending and tax rates. e. Decrease its own spending or increase tax rates.This data represents a hypothetical economy (all figures are in $billions): National Income Disposable Income Consumption $0 $0 $5 40 30 29 80 60 53 120 90 77 160 120 101 Refer to the information above to answer this question. What is the value of the MPS? a. 0.40. b. 0.15. c. 0.25. d. 0.20. e. 0.60