首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Explain: "Equal increases in government spending and tax revenues of n dollars will increase the equilibrium GDP by n dollars".
Explain: "Equal increases in government spending and tax revenues of n dollars will increase the equilibrium GDP by n dollars".
admin
2011-01-15
109
问题
Explain: "Equal increases in government spending and tax revenues of n dollars will increase the equilibrium GDP by n dollars". Does this hold true regardless of the size of the MPS?
选项
答案
Yes, this is true. When government spending changes, the additional income generated enters the income stream immediately from the first expenditure round. Tax changes of equal value do not have an equivalent impact on expenditure in the first round. This is because taxes impact on disposable income first and then upon expenditure. Suppose MPS is 0.1 and let n=$100. The question suggests that government spending of$100 financed by a tax increase of $100 will increase real GDP by $100. The positive income stream coming from the increase in government spending will generate income equal to the (100 + 90 + 81 + 72.90 + etc.)=100×1/MPS=$100×1/0.1=$10,000. The expenditure of one person becomes the income of the next. The reductions in income that result from the tax increase will be (90 + 81 + 72.9 + etc.)=100×MPC×1/MPS=$900. If you take the tax stream away from the government expenditure stream you are left with $100. The tax stream is smaller because only $90 of the initial $100 levied in taxes would have been spent in the first round. If the MPS was 20%, for instance, then the "common" income amounts would start (80 + 64 + 51.20 + etc.) and $100 would still remain after the streams were substracted. Therefore, the final result is in no way dependent on the size of marginal propensity to save (MPS).
解析
转载请注明原文地址:https://kaotiyun.com/show/vCYd777K
0
中级(经济学)
原金融专业英语(FECT)
金融英语(FECT)
相关试题推荐
Iamthirsty;please______meabottleofwater.
[A]between[B]atlast[C]pencil[D]office[D]plane[F]aunt[G]dictionaryinthemiddle
GeneralPershingwasafamousAmerican.HewasintheAmericanarmy,andfoughtinEuropeintheFirstWorldWar.Afterhed
[A]bridge[B]supermarket[C]radio[D]map[E]book[F]letter[G]busPeopleservethemselveswithfoodandgoodsthere.
BobandJimonceworkedinthesamefactory.Oneday,BoblentJimtendollars,butthenJimlefthisworkandwenttoworkina
Ifretainedearningswereunderstatedandliabilitieswereoverstated,whichofthefollowingerrorscouldhavebeenthecause?
Describetheproceduresofcollectionaccordingtothenumbergiveninthecharter.
Describethelinkagesamongprices,exchangerates,interestratesandothervariablesaccordingtothenumbersgiveninthecha
Initsopenmarketoperations,theFederalReservedealsexclusivelywithcommercialbanks.
Commonstockispaidincapital,whichisregardedasthepermanentcapitalofthebusinessbecauseitisnotsubjecttowithdra
随机试题
大便秘结,噫气频作,胸胁痞满,腹中胀痛,苔薄腻,脉弦。诊断为
郁金用于治疗
2个月婴儿,拒食,吐奶,嗜睡3天。查体:面色青灰,前囟紧张,脐部少许脓性分泌物。最应该进行的检查是
供体器官分配的社会标准不包括
推算预产期的最可靠的依据是
根据合同法律制度的规定,下列情形中,民间借贷合同无效的有()。
我仰望星空,它是那样辽阔而______;那无穷的真理,让我苦苦地______、追随。依次填入划横线部分最恰当的一项是()。
按通信类型分,2012年1—5月新增固定资产增长率大于10%的行业,其资产之和为()亿元。
从全文看,第一段引述了许多作家作品,其主要表述的意思是______。下面不属于作者认为“文革”对一些人的阅读的消极影响的是______。
在DOWHILE…ENDDO循环结构中,LOOP命令的作用是( )。
最新回复
(
0
)