Place the following statements in order that they would occur following a $500 billion increase in investment spending in an economy. Assume that the economy has excess capacity. Drag and drop options into correct order and submit. For keyboard navigation.... SHOW MORE E Consumption spending increases by a portion of the second increase in income. III Total spending has no increased by an amount larger than the initial $500 billion. = Consumption spending increases by a portion of the increase in income. III That causes a further increase in overall spending. III GDP increases by $500 billion. Income in the economy increases by $500 billion. = Total spending increases by a portion of the increase in income. III The process continues as long as consumption and income increase. Overall spending has increased by a multiple of the initial change in investment spending. Income increases further as spending increases further. = Total spending in the economy increases by $500 billion