Total

2,000

3,600

**14. **Suppose that wire production in the city with the input coefficients shown in Table 6-3 increases by $100.

**a. **Compute the first, second, and third rounds of spending resulting from the increase in wire sales, using the format of Figure 6-6 to report your results.

**b. **By how much does spending on wire, computers, and local goods eventually increase?

**c. **What is the ultimate increase in total sales?

**15. **Consider a city that estimates its export multipliers from the input coefficients from a 1965 input-output study.

**a. **Will the city overestimate or underestimate the stimulative effects of exports?

**b. **If your answer to (**a**) is “It depends on . . . ,” make a list of questions that you would ask Ms. Information, the most knowledgeable person in the city. Note: She does not know the current input coefficients.