1. In normal times a nation spends about 90 percent of its income. This means that out of a given

$100 income, approximately $90 would be spent first-hand, then about 90 percent of the $90

already spent would be spent second-hand, and so on. Thus the same $100 is actually worth

many times the initial $100 to the general economy. Under the assumption of a 90 percent

reutilization of any given income, how much is $100 really worth to the economy?