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Q: An unexpected increase in total spending will cause an increase you?
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Why the government spending multiplier is different form the tax multiplier?

The government spending multiplier is different form the tax multiplier from the top of my head is because the government spending total effect ripples off. That is if government spending increase then the total income increases. When total income increase, consumption increases, when consumption increases total income increases further (as consumption is a factor of total income), and this pattern is carried forward. This is the the multiplier effect, such that an increase in government spending's final impact on income is much bigger than its initial increase. The tax multiplier on the other hand, has a much smaller effect than government spending. This is because tax is only a portion of the consumer income. That is, if there is a tax cut, consumers only save a fractional amount (specifically 1-MPC) of a tax cut. As a result of the smaller boost in spending form ma tax cut, the ripples/multiplier effect of a tax cut is much less than an increase in government spending.


What is the crowding out?

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect


What is the crowding-out effect?

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect


How would an increase in total expenditures affects the national's economy?

An increase in total expenditures affect the nation's economy would cause an expansion.


What can cause sudden increase in total cholesterol?

Hypothyroidism can cause rapid increase in cholesterol levels. ie; low thyroid hormone level due to impaired functioning of thyroid gland


What is Total consumption spending comprised of?

Total consumption spending is comprised of durable goods, non-durable goods, and services. Total consumption spending is a major economic factor in the US economy.


What is the largest component of total spending in the US economy?

consumer spending


What causes an increase in total protein bilirubin serum cholesterol and eosinophils?

what can cause an icrease the bilirubin and eosinopilia in boold


What will cause the mass of a metal block to increase?

original mixture 4.878g after separating all the components the total mass of the components added up to be 5.235g what caused the increase?


What is the appropriate measure of government s involvement in economic activity?

it is the share of government spending in total spending in the economy


What is the percent increase from 1400000 to 1500000?

7.1429% increase. Percentage increase=(new total-original total)/original total*100% percentage increase=(1500000-1400000)/140000*100% percentage increase= +7.14285714%


What percent of total spending is spent on textile engineering?

$10,728