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, what is the combined effect of the decrease in taxes and increase in spending on GDP? 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, what is the combined effect of the decrease in taxes and increase in spending on GDP? A $600 billion increase in GDP. A $1 trillion increase in GDP. A $2 trillion increase in GDP. A $3 trillion increase in GDP