Posted by **sam** on Tuesday, April 24, 2012 at 10:52pm.

When you spend $1 at the grocery store, the store doesn’t keep all of your money as profit. Some of it is reinvested in the economy when the grocery store buys more merchandise from suppliers. In turn, the suppliers don’t keep all of that money as profit, either; they reinvest it in the economy when they buy more raw materials from other suppliers. The end result is that your $1 may have a larger effect on the economy. Consider the following situation.

In January, a factory invests $400,000 into the economy in the form of employee salaries. During February, assume that the employees reinvest in the economy by spending 80% of their salaries. Then, during March, 80% of what was spent by the employees is again reinvested in the economy by the merchants. And so on.

Find the amount of money that is invested during the first four months. ______________ ______________ ______________ ______________ Month 1 (Jan.) Month 2 (Feb.) Month 3 (Mar.) Month 4 (Apr.)

## Answer This Question

## Related Questions

- algebra - When you spend $1 at the grocery store, the store doesn’t keep all of ...
- algebra 2 - When you spend $1 at the grocery store, the store doesn’t keep all ...
- algebra 2 - When you spend $1 at the grocery store, the store doesn’t keep all ...
- English - What sets off the main conflict in A and P. Answers are Three girls in...
- algebra - Mike works part-time at a grocery store. He also mows lawns to earn ...
- English - What sets off the main conflict in A&P Answers are Three girls in a ...
- math - at a local grocery store, the bananas they receive are transported ...
- math Help!!!!!! - If Nicholas is located at (-3,2), what is the distance to get ...
- Math - If Nicholas is located at (-3,2) what is the distance to get to the ...
- English - Combine these two simple sentences into one simple sentence with a ...

More Related Questions