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
58
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
[A]park[B]radio[C]watch[D]library[E]telephone[F]postoffice[G]supermarketPeoplelistentothenewsormusicoverit.
InAmsterdam(阿姆斯特丹),thereisanunusualChildrenRestaurant.Itisrun(经营)bychildren.Fromthemanagertothecooks,waitersa
OpenTime:9:00to17:00TuesdaysthroughSundays(salesstopat16:00)TicketPrices:FullPrice:RMB30;HalfPrice:RMB15
Alltheworkers______togetherandwrotealettertotheheadofthecompany.
NarberthLibraryoffersyoupleasurereadingandagreatnumberofinformationservices.TheLibrarywasbuiltin1921byamemb
AChart(图表)CALORIES(卡路里)USEDEVERYHOURBodySize110Pounds140Pounds
Mr.Ting’snetcashinflowfromoperatingactivitiesfortheyearending30Juneis$123,000.Thefollowingadjustmentswereincl
ConsideringpurchasingKHCompany,youareevaluatingKH’srevenuegeneralizingability.Thenthefollowinginventoryvaluation
Whatmonetarypolicytoolscanagovernmentusetocontrolmoneysupply?
Supposetheaveragelevelofallpriceshasdoubledoverthelasttenyears.Wecancometoaconclusionthat______.
随机试题
肾癌晚期部分患者可有典型的三联症是指
本案中,可以作为原告的有()。本案中享有管辖权的单位是()。
(2006年)如图5—14所示,插销穿过水平放置平板上的圆孔,在其下端受有一拉力P,该插销的剪切面积和挤压面积分别为()。
设计合同示范文本规定,发包人向设计人提供设计依据文件和基础资料超过规定期限( )天以内,设计人规定的交付设计文件时间相应顺延,在此期限以上时,设计人有权重新确定提交设计文件的时间。
路堑的基本结构包括()。
(2012年)某创业三年的净水器生产企业,大股东以其拥有的国内先进的渗透膜技术以及部分现金投入企业进行生产经营,近两年销售额年均增幅在25%以上。为了获得拓展污水处理工程业务所需的资金,并将长期借款置换为权益资本,企业刚完成向机构投资者募集资金。根据财务风
清正廉明,其要点是:艰苦奋斗,(),防腐拒贿,()。
汉语中虚词可以分为()、()、()、()四类。
马克思、恩格斯始终站在革命斗争的最前沿,他们的一生是为推翻旧世界、建立新世界而不息战斗的一生。马克思、恩格斯领导创建的世界上第一个无产阶级政党是
Duringrecentyearswehaveheardmuchabout"race";howthisracedoescertainthingsandthatracebelievescertainthingsan
最新回复
(
0
)