Final answer:
Total spending will increase by a multiplier effect due to the MPC of 0.80; thus, for Country A, government spending will have the greatest impact compared to Country B due to a higher MPC.
Step-by-step explanation:
The original student question regarding the MPC (marginal propensity to consume) and the impact of stimulus payments is incomplete and lacks necessary data to provide an accurate yes or no answer. However, generally speaking, if the MPC is 0.80, and assuming no tax or other economic factors are at play, the initial stimulus would create a multiplier effect, leading to an increase in total spending by more than the amount of the stimulus itself. The multiplier is calculated as 1/(1-MPC), which would be 1/(1-0.80) or 5. Therefore, a stimulus would ideally increase total spending by five times the injected stimulus amount over several rounds of spending.
Looking at different MPC values for countries in a recession, Country A with an MPC of 0.8 will see a greater impact from government spending compared to Country B with an MPC of 0.6 due to the higher multiplier effect in Country A.