In Figure 2.5, notice that the revenue increases and spending savings get larger each year. Discuss why
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In Figure 2.5, notice that the revenue increases and spending savings get larger each year. Discuss why this occurs, focusing on how a change in the CPI compounds over time, much like compound interest on a bank account.
Figure 2.5
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Deficit Reduction Using a Chained CPI 50 Savings on benefits and other inflation-adjusted spending |Revenue increases on inflation-adjusted taxes 40 Totals 2014-2023 Spending savings: $216 billion Revenue increase: $124 billion Total deficit reduction: $340 billion 20 10 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Year Billions of dollars
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In Figure 25 notice that the revenue increases and spending savings get larger each year Discuss why ...View the full answer
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Statistical Reasoning For Everyday Life
ISBN: 978-0134494043
5th Edition
Authors: Jeff Bennett, William Briggs, Mario Triola
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