Using the appropriate formulas and an MPC of 0.85, calculate the multipliers for each of the two scenarios. Next, calculate the overall impact each will have on the increase in money circulating through the economy.

a. To stimulate an economy in a serious recession, the government spends a total of $700 million to send each person a stimulus check worth $600.

(Enter response here.)

b. To stimulate an economy in a serious recession, the government spends a total of $700 million to construct nationwide high-speed internet infrastructure so that all areas of the country, especially rural areas, will have high speed internet service.

(Enter response here.)

c. Explain why one of these scenarios has a greater overall impact on this economy.

(Enter response here.)