NO.PZ2023071902000016
问题如下:
QuestionIn a theoretical economic model, consumer spending is 65% of pre-tax
revenue, and the average taxation rate is 28% of the overall revenue. If
forecasted government expenditures are projected to rise by $1.5 billion, by
what amount, in billions, will the total revenue and expenditure likely
increase?
选项:
A.$2.8.
B.$4.3.
C.$1.1.
解释:
Solution
-
Correct.
The fiscal multiplier is where
c = marginal propensity to consume = consumption/disposable income
T = the tax rate
Assuming pre-tax income of $1
Disposable income: $1× (1 – 0.28) = $0.72
Marginal propensity to consume: $0.65/$0.72 = 0.9028
The fiscal multiplier: 1/[1 – 0.9028(1 – 0.28)] = 2.8571
With an increase in government expenditures of $1.5 billion, total revenues and expenditures will ascend by $1.5billion × 2.8571 ≈ $4.3 billion
• describe tools of fiscal policy, including their advantages and disadvantages
没太明白答案解析是什么意思