From Kaplan:
Here, with a tax rate of 25% and an MPC of 80%, the fiscal multiplier is 1 / [1 – 0.8(1 – 0.25)] = 2.5, and the increase of $100 in government spending has the potential to increase aggregate demand by $250.
The answer that I calculate from the fiscal multiplier equation is 6.66.
Where is my math erroring?