In Country Z, the government simultaneously decreases its expenditures by $20 billion and decreases taxes by $20 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________.
A)decreases; $100 billion
B)decreases; $20 billion
C)decreases; $80 billion
D)has no effect on; $0

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The Answer of In Country Z, the government simultaneously decreases its expenditures by $20 billion and decreases taxes by $20 billion. If the MPS is equal to 0.2, the government's action ________ real GDP by ________.
A)decreases; $100 billion
B)decreases; $20 billion
C)decreases; $80 billion
D)has no effect on; $0

In Country Z, the Government Simultaneously Decreases Its Expenditures by $20