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.
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As i understand it has quite a bit to do w/ exporting/importing-also the demand of the money. When the US does stupid things international biz starts trusting the US govt (and its currency) less begin to demand more interest from the dollar. You may want to look into M3. This is the amt of money that the govt prints. The US govt recently stopped announcing it and it is a big problem but no one seems to care.
Endogenous variable is a variable which used in economics for inner side parameters and accelerator coefficient of movement. andExogeneous is outside parameters as taxation,tariff,govt revenues e.t.c
The major causes are unemployment and illiteracy rate but there are some other factors too like lawlessness, fundamentalism, backwardness and double standards prevailing in the society. People around the world always think of Pakistannis as terrorists- we aren't all like that. Yes, I agree that there is a high crime rate, however, most Pakistanni's in the lesser civilised areas of Pakistan suffer from extreme depths of poverty, which is somewhat the main reason for high crime rates.
He kept taxes low and increased govt. spending.
GDP = Consumer Spending + Govt Spending + Investment Spending + Net Exports ( Exports-Imports)Add the Income by the nationals fromforeigncompanies to GDPYou get the GNP - GROSS NATIONAL PRODUCT
Gross Domestic Product.It is the measure of economy of a country G.D.P=CONSUMPTION+INVESTMENT+GOVT SPENDING+(EXPORTS-IMPORTS)
By working out the GDP of a country. GDP = C (consumption) + I (investment) + G (govt, spending) + Xports-Mports (net exports)
the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.
More than all of it...by a bunch. That is what Deficit Spending is...that the Bush administration did so much of the Govt is now very, very in debt.
Fiscal policy involves the Government changing the levels of Taxation and Govt Spending in order to influence Aggregate Demand (AD) and therefore the level of economic activity.
Musharaf's govt. was very bad but it was better than Zardari's govt .
application for govt load informantion govt load
Govt is used as an abbreviation for government.
the main heads of govt expenditures are DEFENCE sector, railways, imports, education, hospitals, infrasructures. the revenues earn from exports,taxes,return on facilities.
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