Spending Cycles MPC = 0.75 MPC = 0.88 Change in Spending during Cycle (Billions per Year) Cumulative Increase in Spending (Billions per Year) Change in Spending during Cycle (Billions per Year) Cumulative Increase in Spending (Billions per Year) 1 $100.00 $100.00 $100.00 $88.00 2 75.00 175.00 $75.00 $66.00 3 56.25 231.25 $56.25 $49.50 4 42.18 273.44 $42.18 $37.12