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

• A. Government spending remains constant -> Household income remains constant -> Household consumption remains constant.
• B. Government spending increases -> Household income increases -> Household consumption increases -> Further income increases.
• C. Government spending decreases -> Household income decreases -> Household consumption decreases -> Further income decreases.
• D. Government spending increases -> Household savings increase -> Household consumption decreases -> Further income decreases.

Answer: (B)