If government spending is increased by $5, and this increase in spending is financed by a tax increase in the same amount, the effect on equilibrium would be: A). zero – the balance each other out. B) an increase in equilibrium of $10. C) a decrease in equilibrium of $5. D) an increase in equilibrium of $5.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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can you explain this a little more for me? its a practice quiz. i provided the prof's answer and mild explanation of the correct answer, but I still dont understand it.

13. If government spending is increased by $5, and this increase in spending is financed by a tax increase in the same amount, the effect on equilibrium would be:

A). zero – the balance each other out.

B) an increase in equilibrium of $10.

C) a decrease in equilibrium of $5.

D) an increase in equilibrium of $5.

 

This is his answer:

13. d (compare fiscal policy options #1 and #2 shown above and use $5 for both ∆G and ∆Tx;use any MPC, for example .90)

i dont understand how to math it. Can you show me how?

 

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