NO.PZ2023071902000013
问题如下:
QuestionIf a government enhances its expenditure on domestically produced goods
using funds obtained from an equivalent rise in taxes, the most likely
impact on aggregate demand will be:
选项:
A.Decline.
B.Unaffected.
C.Surge.
解释:
Solution
Incorrect. When the government raises spending by the same amount as it increases taxes, aggregate demand is expected to rise. This is due to the marginal propensity to spend out of disposable income being less than 1, resulting in a smaller reduction in spending (represented by "c," the marginal propensity to consume) for each dollar of disposable income decrease. Aggregate spending will fall less than the tax rise by a factor of "c." This additional output will, in turn, lead to further increases in income and output through the multiplier effect.
Incorrect. When the government raises spending by the same amount as it increases taxes, aggregate demand is expected to rise. This is due to the marginal propensity to spend out of disposable income being less than 1, resulting in a smaller reduction in spending (represented by "c," the marginal propensity to consume) for each dollar of disposable income decrease. Aggregate spending will fall less than the tax rise by a factor of "c." This additional output will, in turn, lead to further increases in income and output through the multiplier effect.
Correct. When the government raises spending by the same amount as it increases taxes, aggregate demand is expected to rise. This is due to the marginal propensity to spend out of disposable income being less than 1, resulting in a smaller reduction in spending (represented by "c," the marginal propensity to consume) for each dollar of disposable income decrease. Aggregate spending will fall less than the tax rise by a factor of "c." This additional output will, in turn, lead to further increases in income and output through the multiplier effect.
• describe tools of fiscal policy, including their advantages and disadvantages
能否解释一下解析,没有理解