The Following Information Is for a Closed Economy Refer to the Information

Multiple Choice

The following information is for a closed economy: $\begin{array}{c}\begin{array}{c}\underline{\text { GDP }} \\\$ 100 \\200 \\300 \\400 \\500 \\600 \\700\end{array}\begin{array}{c}\underline{\text { C }}\\ \$ 100 \\160 \\220 \\280 \\340 \\400 \\460 \end{array}\begin{array}{c}\underline{\text { S}} \\\$ 0 \\40 \\80 \\120 \\160 \\200 \\240 \end{array}\begin{array}{c}I_{g} \\\hline \$ 80 \\80 \\80 \\80 \\80 \\80 \\80 \end{array}\end{array}$
Refer to the information.The introduction of $80 billion of government spending would:

A) lower the multiplier from 2.5 to 2.0.
B) increase the multiplier from 2.5 to 3.0.
C) increase the multiplier from 2.0 to 2.5.
D) have no effect on the size of the multiplier.