Ask your own question, for FREE!
Mathematics 41 Online
OpenStudy (anonymous):

The governmet injects 90 billion dollars into the economy. Each recipient spends 90% of the dollars received. In turn, the secondary recipients spend 90% of the dollars they recieve. etc. Use the expansion of 1/(1-x) in powers of x to come up with a clean measurement of the total spending that results from the 90 billion dollars injection.

OpenStudy (anonymous):

So if we assume (not true, but not a gross assumption) that the money keeps turning over, the effect is \[9(10^{10})\sum_{k=1}^{∞}(9/10)k=9(10^{10})(1/(1−0.9)−1)=8.1(10^{11})\]

OpenStudy (anonymous):

The 90 billion subtracted as the last term is due to the fact that our formula sums from zero, and in this case, we only summed from one.

OpenStudy (anonymous):

Detected another typo..... terms summed should be (9/10)^k.

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Latest Questions
Sleep: Rate my lame art
5 hours ago 13 Replies 2 Medals
Twaylor: is 2 credits and 5 f's but 1 d enough to pass being a sophomore
6 hours ago 29 Replies 2 Medals
Twaylor: is 2 credits enough to pass being a sophtmore
8 hours ago 0 Replies 0 Medals
Twaylor: what is the best milk (store type you dirty [bleeps]
9 hours ago 0 Replies 0 Medals
Gucchi: programming help
6 hours ago 33 Replies 3 Medals
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!