Why is the balanced budget multiplier always equal to 1?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

See More Books

Question Posted: Apr 21, 2015 09:44 AM

See More Questions

In the example in the chapter, the balanced budget multiplier was equal to 1.0. Prove that this must always be the case in our model, regardless of the value of the MPC or the amount by which G and T...
Why is the Balanced Scorecard an important topic both in devising objectives and in evaluating strategies?
Why is the Balanced Scorecard an important topic both in devising objectives and in evaluating strategies?
An undamped mass spring system is released from rest from an initial displacement of x = 0.24 m and starts to oscillate. You see that the mass reaches its largest positive displacement for the first...
Use the diagram from Question 5 to analyze the effects of imposing an import quota instead of a tariff to protect domestic shoe producers. Draw the diagram as in Question 5 and answer the following...
Periodically, Merrill Lynch customers are asked to evaluate Merrill Lynch financial consultants and services. Higher ratings on the client satisfaction survey indicate better service, with 7 the...
Noncurrent liabilities: LO6 a. $110,000. b. $104,000. c. $ 90,000. d. $ 50,000.
Crackle Cookie Company is a relatively new company and so far has sold its products only in its home country, Denmark. In December, Crackle determined that it had excess capacity to produce more of...
Widjaja Company is accounting for a long-term construction contract using percentage-of-completion method. It is a 4-year contract that is currently in its second year. THe latest estimates of total...
Go to the Medicare Learning Network (MLN) Suite of Products and Resources for Billers at http://EHR2.ParadigmEducation.com/MLNBillers and explore the Medicare Learning Network. Identify three...
What is a tax multiplier? How does it differ from the income multiplier?
Why shouldn't the government always program a balanced budget?
The following operations are performed by finding the number that has the least number of decimal places.
Let two planes be given by 2x-y+z = 8 and z = x+y-5 (a) Find the angle between the two planes. Leave your answer in degrees and round to the nearest tenth. (b) Find the vector equation of the line of...
9-2. The profile of a gear tooth shown in Fig. P9.2 is approximated by the trigonometric equation y(x) = a. Estimate the area A using eight rectangles of equal width A x = 1/8, b. Calculate the exact...
tube is hinged to a rotating base as shown in Fig. 4. At the instant shown, the base rotates about the z axis with a constant angular velocity ! 1 = 2 rad/s. At the same instant, the 2 tube rotates...
Find the limit analytically. -7x2+5x-10 lim 0 9x+13x+11 Find the limit analytically. lim +80 4x-13 5x+6x-11
Write a recursive function for the running time T(n) of the function given below. Prove using the iterative method that T(n) = (n). function( int n) { if(n=1) return; for(int i = 1; i
When preparing general purpose financial reports, the elements of GAAP should be applied in the following order: (a) underlying concepts and principles, accounting standards, the Conceptual...
What mass of H2 will be produced when 122 g of Zn are reacted? Zn(s) + 2HCl(aq) ( ZnCl2(aq) + H2(g)
Consider the following project management problem: a. What is the expected completion time of this project? b. What is the critical path through this project? Task Immediate Predecessor(s) Duration...
a. Consider a factory, located in the middle of nowhere, producing a nasty smell. As long as no one is around to experience the unpleasant odor, are any externalities produced? b. Suppose that a...
Considering what weve learned about externalities, should human-caused global warming be completely stopped? Explain, using the language of social benefits and social costs.
In the following cases, the markets are in equilibrium, but there are externalities. In each case, determine whether there is an external benefit or cost and estimate its size. Finally, decide...
firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using...
On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%....
Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $...

Why is the balanced budget multiplier always equal to 1?

Question:

Step by Step Answer:

Professor Fausti is the winner He pays 4 percent inte...View the full answer

Principles of Economics

Students also viewed these Economics questions