Suppose the marginal propensity to consume (MPC) is either 0.65, 0.86, or 0.76. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0. 65 0. 86 0.76 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0. 65 $ 0.86 0. 76 c. Which of the following best describes the relationship between the MPC and the impact of a change in taxes on GDP. the larger the MPC, the larger the impact on GDP of a given change in taxes. the larger the MPC, the smaller the impact on GDP of a given change in taxes. the impact on GDP of a change in taxes does not depend on the size of the MPC. it is impossible to say unless we know the tax rate