What is the Multiplier Effect - 1284 Words

During the time of economic crisis starting around 2010 different rationalities have been taken to try and continue economic growth while maintaining a stable government system that is helping and not hurting. When examining government spending and how it affects the growth of the Gross Domestic Product (GDP) there seems to be disagreements on if it was helping or damaging the prospective growth that could be made. By using the Multiplier Effect the government can estimate how to adjust their government spending and how it effects the spending of the consumer, investments and spending of country’s exports. In time of economic crisis the government has a choice to cut spending or increase spending for public goods and services. â€Å"In 2009,†¦show more content†¦This is where the multiplier effect can be used. It give the government a way to measure the economy as a whole. Increasing the spending would then create a trend of spending increasing the economy ideally. B y increasing government spending it can also increase the stress on the tax payers unless there is a stimulus program that is increasing the incentive to spend. When the government increase taxes it also decreasing the consumers willingness to spend and to invest known as crowding out. This makes a reduction in the economy. The trend seen in Stratmann and Okolski is that the stimulus may work but it could also not live up to its expectation of saving the economy and actually decreasing the the process of growth. This happens mainly when money is allocated to areas that are not in need due to things like political gain. In the article â€Å"Should the Government Spend or Invest Money† by William Fulton, I like his approach to first explaining the difference in spending and investing. Spending has a short term positive effect on the economic condition at hand. So spending is letting go of money now and getting immediate action, investment is letting money go now and expecting a financial return. For example, when President Obama,like President Roosevelt, created a stimulus for theShow MoreRelatedJohn Maynard Keynes : Multiplier Effect1603 Words   |  7 Pages John Maynard Keynes: Multiplier Effect In 1931, a British economist named Richard Kahn introduced what is known as the multiplier effect. In Kahn’s article, â€Å"The Relation of Home Investment to Unemployment†, he first introduced the multiplier effect which in turn ended up being his most notable contribution to the field of economics (Richard Kahn, Baron Kahn.). The multiplier effect can be defined as how aggregate expenditure, for example government spending, causes an increase in output. AccordingRead MoreEcon: Multiplier Effect1343 Words   |  6 Pages6. To fully explain the multiplier effect, we need first to define the Injections and Withdrawals, preferably through the model of Circular flow of income: It is a simple economic model describing a circulation of income between producers (firms) and consumers (households.). It consists of direct inner flow between firms and households and outer flow. The outer flow is caused by the fact that households do not spend all of their income on consumption; part of their income is withdrawn as netRead MoreThe Concept of the Money Multiplier Effect719 Words   |  3 PagesThe concept of the money multiplier effect came into being early in the 20th century, on the heels of a significant change in monetary and banking policy occurring during 1929. Rampant news of bank failures during this time created panic among depositors, who withdrew their money in great numbers. Since there was no security against losses for depositors with banks that failed. News of such failures therefore caused depositors to rush to withdraw their money in an attempt to avert too great a lossRead MoreThe Marginal Propensity Of Consume762 Words   |  4 PagesThe margi nal propensity to consume, sometimes referred to simply as MPC, is used to determine what part of an entity s extra money is consumed, or spent. MPC indicates how consuming changes as income changes. It can be expressed as the ratio of an entity s change in spending over its change in income. For example, imagine a business began earning $200 extra per month. The business than begins to spend an extra $100 per month. The MPC is 50 percent; of each extra dollar the company earns, aboutRead MoreFiscal Policy On Employment, Potential Gdp, And The Economic Growth Rate935 Words   |  4 Pagesable to â€Å"describe the federal budget process and the history of tax revenues, outlays, deficits, and debts†. The second object is to â€Å"explain how fiscal stimulus is used to fight a recession†. The third objective is to â€Å"explain the supply-side effects of fiscal policy on employment, potential GDP, and the economic growth rate†. The federal budget has two main reasons it was created. The first is to fund the activities of the federal government. The second was and still is to attain macroeconomicRead MoreTravel Agent . Stage 2 Tourism: Task 1 Nature Of Tourism1072 Words   |  5 Pagesthrough a travel agent and also more people are travelling today than ever before so I believe that there is still a need for travel agents. Tourism sectors Tourism is divided into different sectors and although sources differ on how may there are and what they are called, generally they all agree on at least 5 â€Å"core† sectors. Several sites listed eight sectors, which are â€Å"Accommodation, Adventure Tourism and Recreation, Attractions, Events and Conferences, Food and Beverage, Tourism Services, TransportationRead MoreConventional and Unconventional Tools Used by Central Banks, A Basic Study Guide1320 Words   |  5 Pages(IMF) reported that the fiscal multiplier for the periphery of the Eurozone was roughly equal to 0.5. One year later, IMF recognised its mistake reporting that the fiscal multiplier was approximately equal to 1.7. Discuss the above statement explaining what the fiscal multiplier is. (b) The above statement states that in a 2012 study the International Monetary Fund (IMF) reported that the fiscal multiplier for the periphery of the EurozoneRead MoreEconomics and National Income1160 Words   |  5 Pages | (a) What is the current equilibrium level of national income? (b) What is the level of injections? (c) What is the level of withdrawals? (d) Assuming that tax revenues are  £7 billion, how much is the level of saving? (e) If national income now rose to  £80 billion and, as a result, the consumption of domestically produced goods rose to  £58 billion, what is the mpcd? (f) What is the value of the multiplier? (g) Given an initialRead MoreEssay about Eco/372 Final1144 Words   |  5 Pageseliminate unemployment was to A. eliminate labor unions and government policies that hold real wages too high 13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it A. increases both nominal and real income 14) The Federal funds rate D. is an intermediate 15) What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%? B. Open-Market Operation 16) If the Federal Reserve increases the requiredRead MoreMacroeconomics and Equilibrium Level1394 Words   |  6 Pagesthe following equation: C = 200 + .5 YD, where YD = Y – T and T = 200. a. What is the level of consumption in this economy if YD = 0? Briefly explain how individuals â€Å"pay for† this consumption when YD = 0. b. Given the above parameters, calculate the level of consumption if Y = 1200. Suppose Y increases to 1300. What happens to the level of YD as Y increases to 1300 (i.e. calculate the change in YD)? What happens to the level of consumption when Y rises to 1300 (i.e. calculate the change

Rolling the Rs by R. Zamora Linmark - 435 Words

The United States is infamously branded as the â€Å"Great Melting Pot.† In R. Zamora Linmark’s Rolling the R’s, the reader recognizes that this legendary melting pot can also be a system that continually ensures some races and cultures remain inferior. Through a series of vignettes written with Pidgin English, the reader follows a group of Filipino-American fifth graders from Kalihi, Hawaii as they struggle with personal and sexual identities while they come of age. The characters in this novel are labeled as racially and sexually improper and are therefore shamed by their small, poverty-stricken Hawaiian community. This intolerance portrayed in Rolling the R’s coincides with America’s past when those who were different from the norm faced extreme difficulties and barriers to assimilate. This problem with integration is revealed throughout the novel by analyzing the various oppressions the children are forced to cope with on a daily basis. Am erican imperialism, organized religion, society’s view of sexuality, and the educational system all play a major role in suppressing groups of people who do not fit the traditional standard. When the U.S. finally granted Hawaii statehood, it affected both the economy and the culture of the Filipino people. In Linmark’s piece, the American culture is considered â€Å"privileged† in comparison to Filipino values and customs. The flow of American culture, products, and goods into the Hawaiian culture is referenced consistently byShow MoreRelatedRolling the Rs by R. Zamora Linmark841 Words   |  3 Pagesâ€Å"No†¦ we have a daughter, and I don’t want to break a holy vow† (Linmark 94). This is a perfect example of how religion has oppressed these people over time. Furthermore, this may contribute to the extreme discourse between the parents and the children throughout the novel. The children can see how religion has affected their parents a s they are virtually brainwashed by their spiritual beliefs and the children wish to avoid the oppressions of this institution. They do so by using their language

Assimilation the Risk of Losing Culture and Identity free essay sample

Blacks should not assimilate with the popular dominant culture but instead maintain their own sense of cultural heritage. The black person who makes the choice to integrate into the dominating culture really must be honest with his or her self and admit that all their pronouncements of concern for the welfare of the black community take a backseat to their personal desire to assimilate. These black people are more of a role model to other black people on how to assimilate or integrate into the colorless and racially generic whole of American culture that just so happens to be controlled and dominated from the white community. Although it may sound wonderful to hear someone say that they don’t notice people’s skin color, reality says that people notice color all the time. The pressure placed on blacks by the dominant culture forces them to move toward assimilation hooks urges. ell hooks states that â€Å"One of the most tragic manifestations of the pressure black people feel to assimilate is expressed in the internalization of racist perspectives† (227). We will write a custom essay sample on Assimilation the Risk of Losing Culture and Identity or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Young blacks need to realize that conforming to the dominant culture is not necessary to exist within it. hooks says that â€Å"It is crucial that those among us who resist and rebel, who survive and succeed, speak openly and honestly about our lives and the nature of our personal struggles† (221). In order to resist assimilation black people as a hold need to be more open and honest about the struggles that take place striving for education and success, those who have blazed the trail need to reach back and help those striving to get there. An excellent job is done by hooks in getting the point across about assimilations effects, and also gives those who have chosen to assimilate something to think about, what cost is one willing to pay, is one willing to break family ties and friendship because of the pressure from the dominant culture to assimilate. The pressures of trying to maintain family and community ties and succeeding in life are difficult, these issues gives us some groundwork to fix some of the problems. While it is difficult to achieve education and success while keeping community ties it is possible, hooks says that â€Å"The most powerful resource anyone can have to study and teach in university settings is full understanding and appreciation of the richness, beauty, and primacy of our familial and community backgrounds† (228). ooks has some very valid points, everyone has to look at them and put them into perspective on how it can fit into their lives. There is not one right answer or solution to this problem, everyone has to search within to find a solution, but those whom have traveled on this road less taken have an obligation to teach those who follow. It is imperative to let the youth know that their struggles for identity and success or not in vein and show them that they are appreciated within the comm unity. Without the bounding and nourishment needed to continue the ties, youth will continue to choose to assimilate and take the easy road with less pressure and headaches to deal with. Blacks could better serve the community by assimilating to the dominant culture forces, the melting-pot theory. This view is advantageous to both a government and its people. It is believed that the nation has reached its present state of development because it has been able to forge one national identity. Separating citizens by ethnicity or race and providing special privileges to Blacks can be harmful, where assimilation tends to put everyone on an even playing field. By keeping ties to community and family Blacks draw attention to differences and the dominant culture fosters resentment towards their culture. Blacks in society that make a full effort to be incorporated into the mainstream naturally reciprocate the benefits and approval from mainstream America. Blacks become successful by shedding their cultural heritage and adopting the ways of the popular dominant culture. Typically Blacks absorbed by the ways of the host society, while loosening to varying degrees their connection to their native culture become highly successful. Through this process Blacks are accepted into society and become a part of the dominant culture and national unity is retained. Works Cited: Assimilation: Does it hurt Black people? (2007) Retrieved on 2/10/2008, from www. topix. com/forum/afam/TPIKF7CB1VN57ONEJ Bell Hooks (2000), Where We Stand: Class Matters, By Routledge

We Are Starting a Bug Bounty Project Log and Announce the First Winner!

We Are Starting a Bug Bounty Project Log and Announce the First Winner! Hi all. It has been a month since we started a Bug Bounty project at robotdon.com, our essay writing and editing tool. And now we are ready to make several important announcements,  expand the program and announce the first winner! All right, during this month we have received vulnerability reports from 32 persons all together. Not much, yeah? This is why we were held back from starting an official communication with all participants. Yet, it’s time to come up with the Project’s Log. Hopefully, we will be updating the Log once a week and informing about interesting submission, ideas, reward giveaways, etc. Also, contrary to our initial design many submission came from professionals, not students. This is why we decided to take off eligibility requirements in that to qualify for a contest a report must come from a student. IMPORTANT NOTICE: now anyone can participate (students and not-students alike). Additionally, most of you have sent vulnerability reports BOTH for robotdon.com and (our main project). This indeed is a great idea! We really liked that. And, we must tell you, some of them were really good. IMPORTANT NOTICE: now you can submit vulnerability reports on both robotdon.com and Also, contrary to our initial idea, we have found that in most of you send 1-2 [minor] vulnerabilities. And due to their scope and nature they don’t fully qualify for a reward. Yet, to keep the project going AND to give more rewards we decided to amend the rewards range: now we want to give $250 $2500 rewards. Hopefully, it will help inaugurate more winners and spur an additional interest in the Bug Bounty Program. IMPORTANT NOTICE: reward amount amended, now we give away $250 $2500 rewards. Finally, we are happy to announce our first winner Shay Shavit, a student of NED University of   Engineering and Technology (Karachi, Pakistan). Shay has pointed out to SQL injection vulnerabilities on Reward granted: $250 Congratulations to Shay! Keep it up! P.S. To inaugurate more contributors to RobotRon Bug Bounty Program we decided to open a HALL of FAME. Please check may be your name is there?!