Suppose Y (output) = 4,000, T (taxes) = tY where t, the marginal tax rate, is 0.3, mpc, c, is 0.8

Suppose Y (output) = 4,000, T (taxes) = tY where t, the marginal tax rate, is 0.3, the marginal propensity to consume, c, is 0.8, and government spending, G- is 1,000. This is a closed economy. Now G increases and as a result Y also increases, such that, after the income change, the budget is exactly balanced. Then, by how much must have increased?
a.) G increases by approximately 4,000
b). G increases by approximately 3,200
d) G increases by approximately 729
G increases by approximately 629