Suppose the MPC = 0

Multiple Choice

Suppose the MPC = 0.60 and government purchases increase by $40 billion.In Keynesian theory,which of the following is true?

A) The TE curve shifts downward by $40 billion and total spending decreases by $40 billion.
B) The TE curve shifts upward by $40 billion,and total spending increases by $40 billion.
C) The TE curve shifts downward by $40 billion,and total spending decreases by $100 billion.
D) The TE curve shifts upward by $40 billion,and total spending increases by $100 billion.