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    Tracking a Purchase

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    Think about a small purchase ($10 or less) you made recently. (Can be any type of purchase, ex: gas, picture frame, breakfast).
    How will that purchase affect the economy?
    Try to trace the effects of your purchase through the economy?how many steps might it take for the money to find its way back to you as part of your income?

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    Solution Preview

    Due to the multiplier effect, each purchase ripples through the economy, and eventually returns to the buyer. It works in this way: the money used to purchase the item enters the bank account of the merchant. ...

    Solution Summary

    The solution discusses tracking a purchase and how it the purchase will effect the economy.