Solution-The government spent all its tax revenues

The government spent all its tax revenues

Reference no: EM13879105

1.Imagine an economy in which the government spent all its tax revenues, but was prevented from spending any more; thus G = t x Y, where It is the tax rate.
a. Explain why government spending is endogenous in the model.
b. Is the multiplier larger or smaller than the case in which government spending is exogenous?
c. When t increases, does Y increase, decrease, or stay the same?

Reference no: EM13879105

Questions Cloud

Government spending is endogenous in the model : 1.Imagine an economy in which the government spent all its tax revenues, but was prevented from spending any more; thus G = t x Y, where It is the tax rate.

A rule in a contract, generally one with a commodity : Create the Value Net for your own business or a business with which you are familiar. Take special care in thinking about complementors; they are often overlooked A rule in a contract, generally one with a commodity supplier, is the take-or-pay provi..

Determining the homogeneous mass : Gate AB in Fig is a homogeneous mass of 180 kg, 1.2 m wide into the paper, resting on smooth bottom B. All fluids are at 20°C. For what water depth h will the force at point B be zero?

What is maximum profit from farm when fertilizer a is used : Global climate change models frequently suggest that some areas will experience changes in the levels of expected rainfall. Assume that for this Alabama farm, these cli- mate models estimate that less rainfall will occur such that the water demand..

The government spent all its tax revenues : 1.Imagine an economy in which the government spent all its tax revenues, but was prevented from spending any more; thus G = t x Y, where It is the tax rate.

Concrete with a roughness : For the piping system of Fig, all pipes are concrete with a roughness of 0.04 inch. Neglecting minor losses, compute the overall pressure drop p1 - p2 in lbf/in2. The flow rate is 20 ft3/s of water at 20°C.

Parliamentary and presidential democracy : What is the difference between parliamentary and presidential democracy?

Determining the parallel-pipe system : For the parallel-pipe system of Fig, each pipe is cast iron, and the pressure drop p1 - p2 = 3 lbf/in2. Compute the total flow rate between 1 and 2 if the fluid is SAE 10 oil at 20°C.

Determine the response that best completes the statements : The following questions dealing with inventory are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations.

User Account

All Pages

The government spent all its tax revenues

Reference no: EM13879105

Reference no: EM13879105

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Being that you are an inquisitive person and wish to add to

How many units are in process at may 31

What is budgeted annual fixed manufacturing overhead

Question 1 evaluate the price of a 1 million bond issue

Find which bond has the highest change in price

Compute the total cost of the work in process

Calculate eight relevant measures

This activity is to be completed using the background

Compare the two resorts'' net incomes

How many computers does the company need to sell

How many shares of common stock would be outstanding

Evaluate point price elasticity of demand

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT