Answer:
$5,262.63
Explanation:
The computation of the program increase in total spending in economy is shown below:
But before that we need to find out the government spending multiplier is '
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.85)
= 6.67
Now
The increase in total spending is
= increase in spending × spending multiplier
= $789 billion × 6.67
= $5,262.63
Hence it would be increased by $5,262.63
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another...... The idea of opportunity costs is a major concept in economics....... Because by definition they are unseen opportunity costs can be easily overlooked if one is not careful.... or not..... it has been awhile since did questions like this
The Correct answer is False