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9. A tax rebate that returns a certain amount of money to taxpayers can have a total effect on the economy that is many times this amount. In economics this phenomenon is called the multiplier effect. Suppose for example, the government reduces taxes so that each consumer has $1000 more income. The govt. feels that each person will spend 80% of this ($800). The individuals and businesses receiving this $800 in turn spends 80% of it ($640) creating extra income for year other people to spend and so on. Determine the total amount spent on consumer goods from the initial $1000 tax. rebate. A. $ 4.000 C. $ 4,200 B. $ 3.600 D. $ 3,800