500
Mrs. Loos buys a bakery in Poland and begins to hire Chris, Hunter, Carter, Zach, Megan, and Eric to work for her new business. She begins to get customers because Chris is outside of the bakery walking around in a big donut costume. The little shop turns a profit and the money from the loan makes Mrs. Loos a lot of dough. She then decides to open an ice coffee shop and calls it Chillin' Cafe'. With the money she deposits from both places, the bank takes $80 from every $100 she deposits and uses it to loan to other customers. Chris decides to open a business of his own from the loan he receives at the bank and opens "The Korn Exchange".
What is the multiplier effect?