Suppose $100, 000 of counterfeit money is introduced into the the American economy. Each time the money is used, 25% of the remaining money is...

Suppose $100, 000 of counterfeit money is introduced into the the American economy.

Each time the money is used, 25% of the remaining money is identied as counterfeit and

removed from circulation. Determine the total amount of counterfeit money successfully

used in transactions. This is an example of the multiplier effect in Economics. Suppose

that a new marking scheme on the new American dollar bills helps raise the detection rate

to 40%. Determine the reduction in the total amount of counterfeit money successfully

spent.