Discussion: The Multiplier Effect-Whats A Good Return? Not long ago, the state of Michigan was using tax breaks to lure movie producers to Michigan. This was part of the "diversification" of industries campaign under former Governor Granholm. The tax credit lured several big films to Michigan - including "Gran Torino" and 'Oz the Great and Powerful". But the program was cancelled under Governor Snyder's administration because it didn't give return on investment it was expected to give. The return on investment was estimated to create $1.40 of spending for every dollar of tax money spent on the program. [NOTE: that's $1.40 of additional GDP (not additional tax revenue) after all rounds of the multiplier have been accounted for, for each dollar of tax money spent on the program.] A local radio show host argued that a return of $1.40 for every dollar spent was a great return because it was more than the state of Michigan spent in tax breaks. What would be a normal return on investment (what's the multiplier usually)? Is$1.40 of GDPa great return on a dollar of tax spending - or a disappointing one? Base your answer on the concept of "the multiplier effect