An economy has a budget deficit of $400 billion and a marginal propensity to consume equal to 0

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An economy has a budget deficit of $400 billion and a marginal propensity to consume equal to 0.60. To balance the budget the government could decrease government spending by $ _____ billion

The decrease in government spending will decrease output (GDP) by $ _____ billion and therefore tax revenue collected will _____. (Enter whole numbers and then the word increase or the word decrease.)

Will the budget be balanced after this change in government spending? _____ Enter yes or no.