In this chapter, we have discussed the multiplier effect and how it works. We also discussed the balanced budget multiplier. In this discussion, we want to apply this knowledge. In a paragraph, explain how an increase in government expenditure on new housing construction affects the economy as a result of the multiplier effect. Suppose the new housing construction costs $3 billion. Suppose this amount was raised entirely through taxation, what will be the impact on the economy based on the concept of the balanced budget multiplier