If the MPE Is Equal to

Multiple Choice

If the MPE is equal to .7, a one percentage point decrease in the real interest rate increases investment spending by $100 billion and exports by $20 billion, the real interest rate is equal to 5%, and government purchases increase by $200 billion, the change in the equilibrium level of real GDP would be

A) -$.667 trillion.
B) $.667 trillion.
C) -$.286 trillion.
D) $.286 trillion.