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The government, through a subsidy program, distributes $\$ 23,000,000$. If each person or agency spends $45 \%$ of what is received, and $45 \%$ of this is spent, and so on, how much total increase in spending results from this goverment action? (Let $\mathrm{a}_{1}=10,350,000$ )

The total increase in spending will be approximately $\$ \square$.
(Round to the nearest dollar as needed)

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Final Answer: The total increase in spending will be approximately $\boxed{18,818,182}$.

Steps

Step 1 :The government, through a subsidy program, distributes $23,000,000.

Step 2 :Each person or agency spends 45% of what is received, and 45% of this is spent, and so on.

Step 3 :This forms a geometric series where the first term (a) is $0.45 * 23,000,000$ and the common ratio (r) is $0.45$.

Step 4 :We can find the total increase in spending by using the formula for the sum of an infinite geometric series, $S = a / (1 - r)$.

Step 5 :Substituting the values, we get $S = 10350000.0 / (1 - 0.45)$.

Step 6 :Solving this gives us $S = 18818181.818181816$.

Step 7 :Rounding to the nearest dollar, the total increase in spending will be approximately $18,818,182$.

Step 8 :Final Answer: The total increase in spending will be approximately $\boxed{18,818,182}$.

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