Suppose Consumer Confidence Improves and as a Result,consumer Spending Increases

question 10

Essay

Suppose consumer confidence improves and as a result,consumer spending increases by $50 billion dollars.Assume households spend $0.80 of each extra dollar of income and save the remaining $0.20.Other things equal,calculate by how much spending will increase during:
a. the first round through the circular flow.
b. the second round through the circular flow.
c. the third round through the circular flow.
d. the fourth round through the circular flow.

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Definitions:

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Different methods of walking that individuals use when assisted by crutches, depending on their strength, balance, and the extent of their injury or disability.

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A loss of muscle function in the leg, rendering the individual unable to move or feel sensation in the affected limb.

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