Geometric Sequences and Series · Example 9
The government has decided to give a $1,000 tax rebate to each household in order to stimulate the economy. The government statistics say that each household will spend 80% of the rebate in goods and services. The businesses and individuals who benefitted from that 80% will then spend 80% of what they received and so on. The result is called the multiplier effect. What is the total effect of the rebate on the economy?
OpenStax, Intermediate Algebra 2e · §12.3 Geometric Sequences and Series · Example 9
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