Please help me come to this answer, which is (26.67 billion.)

Please explain and show the formula first, then insert the formula again with all of the numbers into that same formula format so I can see what numbers go where. I submitted this question twice now, and two tutors got it completely wrong when I did not give the correct answer initially. Below is the initial question that I need to find the answer to, and below that is the same question worded differently that is supposed to "help"(which it didn't) with the correct formula and how to solve it. Please include what all of the formula abbreviations mean as well!

A government is currently operating With an annual budget deficit of $40 billion. The government has determined that every 510 billion reduction In the amount of bonds it Issues each year would reduce the market interest rate by 0.10 percentage point Furthermore. it has determined that every 0 10 percentage point change in the market interest rate generates a change in planned investment expenditures in the o p05ite direction equal to $5 billion. The marginal propensity to consume is 0.80 Finally. the government knows that to eliminate an inflationary gap and take into account the resulting change in the price level it must generate a net leftward shift in the aggregate demand curve equal to $40 billion. Assuming that there are no direct expenditure offsets to fiscal policy. how much should the government increase taxes? 5 billion (Enter your response rounded to two decimaipieces.) Hint How much new private investment spending is induced by each 3510 bittfon decrease in government spending? A government is currently operating with an annual budget deficit of 540 billion. The government has determined that every $10 billion reduction in the amount of bonds it issues each year would reduce the market interest rate by a given m = 0.10 percentage point. Furthermore. it has determined that every 0.10 percentage pomt change in the market interest rate generates a change in planned investment expenditures in the opposite direction equal to x: $5 billion. Finally: the government knows that to eliminate an inflationary gap and take into account the resulting change in the price level, it must generate a net leftward shift in the aggregate demand curve equal to the inflationary gap of S40billion Government increases taxes by $1 billion. interest rate falls by 010 percentage points and planned investment expenditure increases by $0.50 billion. MPG Now' when taxes are increased by $1 billion and because ofthat tax increase: AD falls by the amount of the tax multiplier: m But for every $1 billion tax ' ' t t' ADb mx Th f th t d ' ' AJd t 1b'll' ' t ' MP0 mx MP07mX A It increase: inves men increases y 1_ MP0 . ere ore. e he re uction in ue o $ i ion increase in axes is 1 _ MPG 1_ MP0 1_ MP0 . s a resu _. AY >