Suppose the marginal propensity to save (MPS) is 0.25. If government expenditure goes up by $50 billion, then you can re

[answerhappygod]

Suppose the marginal propensity to save (MPS) is 0.25. If
government expenditure goes up by $50 billion, then you can
reasonably expect that, ceteris paribus:
Real GDP (Y) in the economy will stay unchanged since this is
only affected by consumer spending and not government
expenditure.
Real GDP (Y) in the economy will increase by $12.5 billion.
Real GDP (Y) in the economy will increase by $200 billion.
Taxes will go up by $50 billion to balance the budget.