Q1. in Springfield, the sales tax rate is .05, marginal propensity to import is .1. The marginal propensity to consume is .8. If revenue for their minor league baseball team increases by $2,000,000, by how much does tax revenue increase?

Q2. Suppose Springfield used the same method as in the previous problem to calculate the value of having a minor league hockey team, by observing that the average minor league hockey team makes $10 million in revenue each year. What might be the flaws in this analysis (Remember, the baseball team still exists).