04-15-2011, 12:20 AM
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#7
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Been There, Done That.
Drives: 2013 BMW M3
Join Date: Jan 2008
Location: Maryland
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Quote:
Originally Posted by skinnycow
a.
1 / (1 - .7)
1 / .3
3.33 or 3 1/3 multiplier
b.
(-.7) / (1 - .7)
(-.7) / (.3)
-2.33 or -2 1/3
c.
[(-$185) x (-.7)] / (1 - .7)
$129.5 / .3 = $431.66 or $431 2/3 billion
d.
($185) / (1-.7)
$185 / .3 = $616.66 or $616 2/3 billion
e.
No, based off the multiplier of $185 billion increased government spending, the result will be $431.33 billion. Unlike the tax cut, the same amount in government spending will not be enough to close the gap of $615 billion. A tax cut of $185 billion would close the gap, using the multiplier.
its been awhile, but everything should be correct. i'm 80% sure e is right, but look over it to make sure it makes sense.
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You rock my world.
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Quote:
Originally Posted by Jaypod
You sound like my buddies who have AMG's - Slam the gas, slam the brakes...
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