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 increase in government expenditures 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 increase in government expenditures will increase GDP by: $450 billion. $1 trillion. $2.4 trillion. $3 trillion