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Sometimes a city will argue that having a professional sports franchise in the city will contribute to economic growth. The rationale for this statement is based on the multiplier effect. Suppose a city estimates that a professional sports franchise will create $45 million of additional income and that a person receiving a portion of this money will spend 80% and save 20%. Assuming the multiplier effect model is accurate, what is the net effect of the $45 million? Round to the nearest hundred thousand.
Deductible
An amount of any loss that is to be paid by the insured.
Inflationary Times
Periods characterized by a general increase in prices and fall in the purchasing value of money.
Insurance Policies
Contracts between an insurer and a policyholder, outlining the terms under which the insurer agrees to pay a benefit upon the occurrence of a specified risk or event.
Bank Interest Rates
The percentage at which interest is paid by a borrower for the use of money that they borrow from a bank.
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