The national restaurant association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the united states, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. this indicates that the spending multiplier for the restaurant industry is equal to

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Business

Beckham Copeland

15 March, 00:35

The national restaurant association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the united states, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. this indicates that the spending multiplier for the restaurant industry is equal to

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Izayah Merritt · Answer 1

The spending multiplier refers to how much economic output increases with an increase in spending.

A general formula for the multiplier is1 / (MPS). In the specific case with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy, the spending multiplier for the restaurant industry is equal to 2.05.