Mudbug College in Louisiana is trying to convince Louisiana taxpayers that the tax dollars spent at Mudbug College are well spent. One of the college's arguments is that for every $1 spent by Mudbug College an additional $4 of expenditures are generated within Louisiana. Mudbug College is arguing that the multiplier for their expenditures is
A) 0.25.
B) 1.
C) 4.
D) 25.

Question

Quizplus · Accepted Answer

The multiplier for Mudbug College expenditures is 4, meaning that for every $1 spent by Mudbug College, an additional $4 of expenditures are generated within Louisiana.

Mudbug College in Louisiana Is Trying to Convince Louisiana Taxpayers