Increase in government spending of an equal amount

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Reference no: EM139307

Q1. Why does a reduction in taxes have a smaller multiplier effect than an increase in government spending of an equal amount?

Q2. Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question?

Q3. A group of concerned citizens has established a trust fund that pays 6% interest, compounded monthly, to preserve a historical building by providing annual maintenance funds of $35,000 forever. Compute the capitalized equivalent amount for these building maintenance expenses
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Reference no: EM139307

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