Multipliers Practice Test

Two economies, X and Y, each increase government purchases by $\$20$ billion in the short run. Economy X has an MPC of $0.9$, while Economy Y has an MPC of $0.6$. Given the change in spending described, which outcome is most consistent with the multiplier model when saving is the main leakage?

Given the change in spending described, the government increases purchases by $30\text{ billion}$ in the short run. The MPC is $0.8$. Alternatively, the government could cut lump-sum taxes by $30\text{ billion}$ with the same MPC. Ignoring other leakages, which comparison of total changes in real GDP is correct?​