In Exercises 89 and 90, use the following information. A

Chapter , Problem 8.3.89

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In Exercises 89 and 90, use the following information. A state government gives property owners a tax rebate with the anticipation that each property owner will spend approximately of the rebate, and in turn each recipient of this amount will spend of what he or she receives, and so on. Economists refer to this exchange of money and its circulation within the economy as the multiplier effect. The multiplier effect operates on the idea that the expenditures of one individual become the income of another individual. For the given tax rebate, find the total amount put back into the states economy, assuming that this effect continues without end. 89. $400 75%