Question

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

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.