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Suppose as part of Demand-side Contractionary Policy Government spending decreases by $100 billion and the marginal propensity to consume is 0.5. Assuming no taxes and

Suppose as part of Demand-side Contractionary Policy Government spending decreases by $100 billion and the marginal propensity to consume is 0.5. Assuming no taxes and no trade, by how much will real GDP change? A. $500 billion decrease. B. $200 billion decrease. C. $800 billion decrease. D. $400 billion increase. E. $100 billion decrease.

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