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

• A. Initial \$500 million -> \$150 million -> \$45 million -> \$13.5 million, and so on.
• B. Initial \$500 million -> \$350 million -> \$245 million -> \$171.5 million, and so on.
• C. Initial \$500 million -> \$600 million -> \$720 million -> \$864 million, and so on.
• D. Initial \$500 million -> \$250 million -> \$125 million -> \$62.5 million, and so on.

Answer: (B)