Suppose that the ecnomy is producing at its capacity. what is the short run impact of an increase in government spending of $100 billion financed by

Suppose that the ecnomy is producing at its capacity. what is the short run impact of an increase in government spending of $100 billion financed by borrowing?

A. output incresases by $100 billion

B. output increases by more than $100 billion

C. out put decreases by $100 billion

D. output decreases by more than $100 billion

E. output does not change.