which-sequence-best-illustrates-the-process-of-repeated-rounds-of-spending-and-e

Question

Which sequence best illustrates the process of repeated rounds of spending and earning triggered by initial government expenditures?

Accepted Answer

Government spending increases -\u003e Household income increases -\u003e Household consumption increases -\u003e Further income increases.

Answer

Government spending remains constant -\u003e Household income remains constant -\u003e Household consumption remains constant.

Answer

Government spending decreases -\u003e Household income decreases -\u003e Household consumption decreases -\u003e Further income decreases.

Answer

Government spending increases -\u003e Household savings increase -\u003e Household consumption decreases -\u003e Further income decreases.