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Suppose the MPC is 0.60. If the government increases expenditures by $200 billion, then by how much does GDP change? If the government decreases taxes

Suppose the MPC is 0.60. If the government increases expenditures by $200 billion, then by how much does GDP change? If the government decreases taxes by $200 billion, then by how much does GDP change?

Question 10 options:

$300 billion and $180 billion

$300 billion and $300 billion

$500 billion and $300 billion

$500 billion and $500 billion

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