fiscal policy, that is ↑G or ↓T or both.
因為government spending on goods and service可以增加 NI, 從而帶動滾雪球效應, 使NI 以倍數上升。而減 tax 則可以增加 可支配收入, 增加消費, 增加 NI, 又係有滾雪球, 不過考慮番MPC 的因素, 有可能削弱左個 乘數效應。
下半題, 我估佢想你答crowding out effect.
政府消費有機會要同私人firm爭用社會資源, 就會bid up market interest rate, 減低私人機構的投資意欲。
另外, interest rate 高左, 咁我推論人們會↑儲蓄, ↓消費。
經濟由national income , GDP , GNP去睇
For simplicity , NI, GDP , GNP = Y
Y = C + I + G + NX
Fiscal Policy is to increase the government expenditure to increase income
In simple keynes model,
投資( I ) is exogenous , a increase in income will not affect investment
儲蓄( S ) is function of Y , S=f(Y) , a increase in income will increase saving
消費( C ) is function of Y , C=f(Y) , a increase in income will increase consumption
also , increase the government expenditure will result a budget deficit id tax( T ) is constant. ( budget deficit = T-G<0 )