Answer the following:

a. MPS = 0.1. What is the government spending multiplier?
b. MPC = 0.6. What is the government spending multiplier?
c. MPS = 0.25. What is the government spending multiplier?
d. MPC = 0.5. What is the tax multiplier?
e. MPS = 0.2. What is the tax multiplier?
f. If the government spending multiplier is 8, what is the tax multiplier?
g. If the tax multiplier is −5, what is the government spending multiplier?
h. If government purchases and taxes are increased by $500 billion simultaneously, what will the effect be on equilibrium output (income)?