If the MPC is 0.95, how much will taxes need to be cut to cause AD to increase by $200 million? None of these answers $5 million $10 million $20 million

Suppose that the economy is experiencing a recession with an estimated recessionary gap of $15 billion. Congress is considering the use of fiscal policy to ease the recession, but due to current political sentiments, it has determined that the maximum spending increase the government is willing to support is $2 billion. It wants to make up the remainder of the recessionary gap using tax cuts. If a spending increase of $2 billion is approved and the MPC is 0.8, by how much will taxes need to be reduced to close the remainder of the recessionary gap? Instructions: Round your answer to 2 decimal places. 5 billion

What is the effect on savings of a tax cut of $15 billion? Is this inflationary or deflationary? Assume that the MPC is 0.9.

in another economy, the MPC = 4/5, government needs to increase expenditures $20 to complete a project, but it does not want to increase debt so it increases taxes $20 also. What, if any, will be the change in output generated by this balanced - budget expenditure scenario?