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Q: Why balanced budget multiplier is equal to 1?
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Continue Learning about Math & Arithmetic

How do you find a multiplier?

For a change of p percent, the multiplier is (1+p/100).


Solution to find 1000th prime number using python?

Here's a start umbers=[True]*5001 index=2 primes=[] while index<5000: multiplier=2 while index*multiplier <= 5000: Numbers[index*multiplier]=False multiplier+=1 index+=1 while Numbers[index]==False and index < 5000: index+=1 for x in range(0,5000): if Numbers[x]==True: primes.append(x) x+=1 print primes


How do you convert 3000 inches to miles with unit multiplier?

1 mile = 63360 inches. So the unit multiplier for inches to miles is 1/63360 Therefore, 3000 inches = 3000*1/63360 = 0.0473 miles (approx).


Can a government spending multiplier be a value of less than 1?

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


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.