Suppose the government enacts a $\$ 10$ billion tax cut and that the people who save money from this tax cut will spend $70 \%$ of it and save the rest. This generates $\$ 10(0.7)=\$ 7$ billion of extra income for other people. Assume these people also spend $70 \%$ of their extra income, and that these transactions continue. Let $A(n)$ be the accumulated amount of spending, in billions of dollars, that has occurred after $n$ such transactions. For example, $A(1)$ is the amount of spending that has occurred after the first group of people has spent its money, so $A(1)=$ $\$ 10(0.7)=\$ 7$ billion. $A(2)$ is the amount of spending that has occurred after the first and second groups of people have spent their money, so $A(2)=\$ 10(0.7)+\$ 7(0.7)=$ $\$ 11.9$ billion, as shown in the following graph: