Assume an Economy Where the Deficit Response Index Is Zero

question 25

Essay

Assume an economy where the deficit response index is zero. If the budget deficit is $85 billion and the multiplier is 4 how much must government spending be cut in order to drive the deficit to zero? What role does the multiplier play in the solution to this problem?

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Definitions:

Head Injury

Physical trauma to the head, which can range from mild to severe and affect brain function.

Diving

The sport of jumping or falling into water from a platform or springboard, usually while performing acrobatics.

Discriminative Stimulus

A stimulus in the presence of which a particular response will lead to a reinforcement (or punishment) in operant conditioning, essentially signaling the availability of reinforcement.

Avoidance Learning

A learning process in which an individual learns a behavior or response to avoid an unpleasant or harmful stimulus.