10. The "Multiplier Effect" in economics states that when $X is initially spent in a locale to boost the economy, the effect is larger than simply $X. That's because p% of that initial $X in revenue is spent again in the same locale, and then p% of that amount is spent again, and so on. If $2 billion is initially spent, and this results in a $9 billion total revenue effect, what is p to the nearest tenth of a percent?

10. The "Multiplier Effect" in economics states that when $X is initially spent in a locale to boost the economy, the effect is larger than simply $X. That's because p% of that initial $X in revenue is spent again in the same locale, and then p% of that amount is spent again, and so on. If $2 billion is initially spent, and this results in a $9 billion total revenue effect, what is p to the nearest tenth of a percent?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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