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The federal government will give a tax rebate of $1500 to every individual filing federal income tax. Suppose every person receiving the rebate will spend
The federal government will give a tax rebate of $1500 to every individual filing federal income tax. Suppose every person receiving the rebate will spend 70% ($1050) and save 30% ($450). The money is resent again and again by other people and businesses at a 70% rate, Determine the theoretical total amount of money spent from the initial $1500. Assume the money can be respect an infinite number of times.
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