Which of the following best illustrates the repeated rounds of spending and earning triggered by a \$1 billion government expenditure with an MPC of 0.8?

• A. Initial \$1 billion -> \$0.2 billion -> \$0.04 billion -> \$0.008 billion, and so on.
• B. Initial \$1 billion -> \$1.2 billion -> \$1.44 billion -> \$1.728 billion, and so on.
• C. Initial \$1 billion -> \$0.8 billion -> \$0.64 billion -> \$0.512 billion, and so on.
• D. Initial \$1 billion -> \$0.5 billion -> \$0.25 billion -> \$0.125 billion, and so on.

Answer: (C)