Taxes: T = 20 . Government spending: G = 20 • Consumption: C = 10 + 0.6(Y - T) where Y denotes the GDP. We also know that investment is constant but we ignore its value. One day, the government initiates a Keynesian stimulus to support the economy. It increases spending to 40. To avoid a big increase in public debt, it also increases taxes to 30.   What is the variation of GDP? Select one: a. It increases by 30 b. It increases by 35. c. It increases by 40 d. It increases by 50

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