A personal tariff cut of $50 bil. will affect income differntly than an increase in govt spending by $50 bil.?
Is it because:
a. the increase in govt spending will produce a political business cycle
b. The increase in govt spending is smaller number expansionary than the increase in taxes
c. households may retrieve element of the superfluous income from the toll cut.
d. households may consume more than the optional income from the due cut.
Answers:
B. An increase in senate spending doesn't affect everyone; with the sole purpose those who benefit from the industries on which the money is spent. It is, and so, smaller quantity expansionary.
All the other answers are dependent on masses unknown variables (who will spend, who will recover, who will overspend, etc.) And what the heck is a "political business cycle"? LOL
Is "adjectives of the above" an selection... All of these give the impression of being true to me. If I have to pick one, I'd probably pick 'c'.
d. If I carry my share of a $50 bil charge cut I run out up near the money. If at hand's an increase in govt spending by $50 bil I don't end up beside anything, because I don't receive any govt spending. Of course, I'm not rich, so I would spend my share of the $50 bil export tax cut, on things I call for. If I be rich, I'd merely sock my share of the $50 bil into my investments.
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a. the increase in govt spending will produce a political business cycle
b. The increase in govt spending is smaller number expansionary than the increase in taxes
c. households may retrieve element of the superfluous income from the toll cut.
d. households may consume more than the optional income from the due cut.
Answers:
B. An increase in senate spending doesn't affect everyone; with the sole purpose those who benefit from the industries on which the money is spent. It is, and so, smaller quantity expansionary.
All the other answers are dependent on masses unknown variables (who will spend, who will recover, who will overspend, etc.) And what the heck is a "political business cycle"? LOL
Is "adjectives of the above" an selection... All of these give the impression of being true to me. If I have to pick one, I'd probably pick 'c'.
d. If I carry my share of a $50 bil charge cut I run out up near the money. If at hand's an increase in govt spending by $50 bil I don't end up beside anything, because I don't receive any govt spending. Of course, I'm not rich, so I would spend my share of the $50 bil export tax cut, on things I call for. If I be rich, I'd merely sock my share of the $50 bil into my investments.