1. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.3 to r = 0.35. What is the approximate change in the economic impact?
2. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.8 to r = 0.85. What is the approximate change in the economic impact?
3. Compare the results of Steps 12 and 13. Notice that the change in the spending rate is the same (?r = 0.05) in both cases. Is the change in the economic impact greater when r is small or large?