Problem
Calculate the Impact of the Multiplier Effect In 1993, President Bill Clinton asked Congress to approve an additional $15 billion in spending to repair and upgrade the nation's highways. In addition to improving the nation's roads, President Clinton argued that this spending would increase output and employment in the economy. Assume that each person who received any of this extra spending as income would have spent 80 percent of it. Describe how the multiplier effect would have increased the total increase in spending to far more than the original $15 billion President Clinton wanted to spend. What does this show about the importance of changes in government spending?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.