Examlex
If a fully-taxable bond yields a BTROR of 8% (Rb = 8%) and a tax-exempt bond of similar risk earns a BTROR of 5% (Rf = 5%) ,then the implicit tax is
Marginal Propensity
The ratio of change in consumption to the change in income, indicating how much of additional income will be spent or saved.
Discretionary Expansionary
Refers to fiscal or monetary policy actions initiated by a government or central bank to stimulate economic growth.
National Saving
The total amount of savings generated within a country, equal to the sum of private and public savings, often used for investment.
Crowding Out
The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or competition for resources.
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