which-sequence-best-illustrates-the-repeated-rounds-of-spending-and-earning-trig

Question

Which sequence best illustrates the repeated rounds of spending and earning triggered by a $500 million government expenditure with an MPC of 0.7?

Accepted Answer

Initial $$500 million -\u003e 350 $$million -\u003e $$245 million -\u003e 171.5 $$million, and so on.

Answer

Initial $$500 million -\u003e 150 $$million -\u003e $$45 million -\u003e 13.5 $$million, and so on.

Answer

Initial $$500 million -\u003e 600 $$million -\u003e $$720 million -\u003e 864 $$million, and so on.

Answer

Initial $$500 million -\u003e 250 $$million -\u003e $$125 million -\u003e 62.5 $$million, and so on.

Which sequence best illustrates the repeated rounds of spending and earning triggered by a \$500 million government expenditure with an MPC of 0.7?