The American Recovery and Reinvestment Act of 2009 that was passed during the first month of the Obama administration cut taxes by about $200 billion and increased government spending by $600 billion. If the MPC is 0.75, the decrease in taxes will increase GDP by: The American Recovery and Reinvestment Act of 2009 that was passed during the first month of the Obama administration cut taxes by about $200 billion and increased government spending by $600 billion. If the MPC is 0.75, the decrease in taxes will increase GDP by: $150 billion. $600 billion. $800 billion. $ 1 trillion