# Suppose that in Bellefonte, 35% of new investment spending is re-spent within the region. What...

## Question:

Suppose that in Bellefonte, 35% of new investment spending is re-spent within the region. What the maximum economic impact of a $16,141 investment in the local museum? Round your answer to the nearest$100.

## Investment Spending

Investment spending can be considered as an injection into the circular flow of income in the economy. Investment spending is usually made by firms for two main reasons: to replace worn-out or failing assets and to purchase new machinery. These two purposes of investment spending are meant to ensure that firms reduce long-term costs, increase competitiveness, and increase profits.

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