A state government gives property owners a tax rebate with the anticipation that each property owner spends
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A state government gives property owners a tax rebate with the anticipation that each property owner spends approximately p% ofthe rebate, and in turn each reco ent this amount will spend p% of what they receive, and so on. Economists refer to this exchange of money and its circulation within the economy as the "multipler emect." The multiplier effect operates on the idea that the expenditures of one individual become the income of another individual. For the given tax rebate, find the total amount put bace into the state's economy, assuming that this effect continues without end.
Tax rebate p%
$560 50%
Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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