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Quite simply, no. The Spending multiplier, even on government spending, will always have a value of greater than one. It really is self-evident; for that money to be subjected to a multiplier, it must be circulating multiple times, therefore the first circulation (the initial spending) would result in a multiplier of one, and subsequent spends would increase the multiplier further
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Why tax multiplier is always be smaller than govt spending multiplier?
If the full multiplier for G (i.e. ignoring crowding out effects) is = change in G/Multiplier Then the tax multiplier is = change in T x marginal propensity to consume/multiplier since the mpc is between 0 and 1 the tax multiplier is less. Intuitively it is not difficult to see why, the change tax enters spending decisions through consumption and consumption is dependant on the mpc. Whereas as G affects spending decisions directly - it is a injection into the economy that does not have to work through some indirect source to have an effect on the economy.
What Decmial Place Value mean?
It means that depending on its position, a digit will have a "multiplier value" that will make it worth more or less. In the number "123", the place-value of the digit 3 is 1, the place-value of digit 2 is 10, and the left-most place-value - for the digit 1 - is 100. In other words, the mere fact that there are other numbers to the right of the "1" make it worth more.
What does negative value mean?
A value that is less than zero.A value that is less than zero.A value that is less than zero.A value that is less than zero.
How do you save 6000 dollars in 5 months?
try spending less....
What is the lcm of 484?
In order to find the lcm (less common multiplier) you need another number, so the lcm of 484 is 484 in this instance
