Answer:
Change in total spending will be $1000
Step-by-step explanation:
We have given MPC as MPC = 0.8
We have to find Change in total spending for the economy due to a $200 billion government spending increase
First we have to find the multiplier
Multiplier is given by

Now change in total spending = $200×5 = $1000
So change in total spending will be $1000