1. a) Compute the effect of a $22 billion federal income tax cut when the population's marginal propensity to consume is 90%.
b) What is the "multiplier" in this case?
2. A patient receives 3 milligrams of a certain drug each day. Each day the body eliminates 20% of the amount of drug present in the system. Estimate the total amount of the drug present after extended treatment, immediately after a dose is given.