In the Keynesian-Cross Model,if the MPC Equals

Multiple Choice

In the Keynesian-cross model,if the MPC equals .75,then a $1 billion decrease in taxes increases planned expenditures by ______ and increases the equilibrium level of income by ______.

A) $1 billion; more than $1 billion
B) $.75 billion; more than $.75 billion
C) $.75 billion; $.75 billion
D) $1 billion; $1 billion