An economy started the year with $50 billion of debt. During the year, tax revenues were $25 billion while government spending was $15 billion. At the end of the year the debt is

An economy started the year with $75 billion of debt. During the year, the economy collects $10 billion in tax revenues and spends $30 billion. Debt at the end of the year is

Question 42 options:

If leakages out of the circular flow are 25% of additional income, the size of the multiplier effect is

Therefore, a government injection of 2 million dollars into the circular flow will actually generate

million dollars of additional spending