Assume That We Want to Drive Our Economy Out of Recession

Assume that we want to drive our economy out of recession by generating a $400 billion change in real GDP. The MPC is 0.80. Which of the following policy prescriptions would generate the targeted $400 billion change in income?

A) $120 billion increase in government spending and $50 billion increase in tax revenue.
B) $140 billion increase in government spending and $70 billion increase in tax revenue.
C) $160 billion increase in government spending and $120 billion increase in tax revenue.
D) $220 billion increase in government spending and $100 billion increase in tax revenue.
E) $400 billion increase in government spending and $300 billion increase in tax revenue.