If the government lowers taxes by $400 billion, and the MPC is −0.75, the change in GDP will be:
A) $400 billion.
B) $1,600 billion.
C) $300 billion.
D) $1,200 billion.

Question

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The Answer of If the government lowers taxes by $400 billion, and the MPC is −0.75, the change in GDP will be:
A) $400 billion.
B) $1,600 billion.
C) $300 billion.
D) $1,200 billion.

If the Government Lowers Taxes by $400 Billion, and the MPC