Evaluating the effects of an expansionary fiscal policy

Assignment Help Other Subject

Reference no: EM132151385

Question: Economists in the Obama administration estimated that the government stimulus package in 2016 has a multiplier value of 1.57, while other economists have estimated the multiplier to be only 0.61.

a. Briefly explain how the government spending multiplier can have a value less than 1.

b. Why does an estimate of the size of the multiplier matter in evaluating the effects of an expansionary fiscal policy?

c. Which types of government spending have high multiplier effects and which types have low multiplier effects?

Reference no: EM132151385

Questions Cloud

What would motivate company to pursue global strategy : What would motivate company to pursue a global strategy and what is necessary to achieve a successful program?

Disadvantages of such monopsony power in healthcare : In economics, it is generally agreed that monopolies are bad. However, the book argues that the healthcare system could be improved by purchasers of care.

Binary search approach and returns : Write code in the method binarySearch() in "SearchMethods" class which finds the element in an array using binary search approach and returns

Emergency operations considered segment of system : Why is emergency operations considered a segment of system safety if it is primarily concerned with actions after a disaster?

Evaluating the effects of an expansionary fiscal policy : Economists in the Obama administration estimated that the government stimulus package in 2016 has a multiplier value of 1.57.

Slovenia before reaching expansion decision : What would Barto’s top management want to know about the business environment in Slovenia before reaching an expansion decision,

Identify how intrustion detection system : Can someone help me identify how Intrustion detection system and intrusion prevent system can help protect confidentiality, integrity and availability.

Illustrate economies of scale or scope : Suppose that Shan On has received a contract to maintain an additional 1000 elevators. Does the example in (a) illustrate economies of scale or scope?

Microsoft windows network security : What are the best practices to follow for Microsoft Windows network security. Which two would you start with and why?

User Account

All Pages