Suppose the nation of Kolechia is trying to determine the effects of an increase in government spending of $240 million versus a decrease in taxes of $240 million in order to stimulate the economy. Assume that the marginal propensity to consume is 0.60. Which of the following statements is true? The increase in government spending of $240 million will cause equilibrium incomes to rise by $420 million. There is no difference between either one since they are both considered expansionary fiscal policies, Therefore, Kolechia is free to choose between either policy as the nation sees fit. O The decrease in taxes of $240 million will cause equilibrium incomes to rise by $360 million. The decrease in taxes is likely to have more direct impact on income than the increase in government spending because the tax multiplier is greater than the government spending multiplier