How do you calculate the multiplier with an income tax?
To calculate the multiplier with an income tax make sure to use the second term of the sequence into "b," 1/1-b
How do politics play a role in the Federal Reserve Bans besides the moving of locations of the banks?
Another piece of evidence of politics is that the federal reserve was made when there were 48 states. One state managed to get two federal reserve banks, the state of Missouri.When the system was being set up the citizens of Kansas City and citizens of St. Lewis were both admit on getting the federal reserve bank. There was a lot of political clout in Missouri. The people who decided where the banks were going to be placed had relationships with Missouri.
open market operations
Buying & selling government securities to change the supply of money
What are the weaknesses on the index of leading indicators?
1. Even if the index tells you a recession is coming, it does not tell you when a recession is coming. The notice that a recession or recovery is coming is not the same every single time. It can range from 18 months or 8 months as a notice.2. In 1984, the index declined and there was no recession. It was a misleading index. Economists were beside themselves and wondering what was going on.
Who produces the index of leading indicators?
The index of leading indicators was produced by the Bureau of economic analysis and it is now produced by the Conference Board, a non-profit research organization.
If you are in charge of the index of leading indicators and you discover the index is not doing its job. What do you do?
Economists in charge make changes if certain indicators are not working.
If you change the leading indicators in the index of leading indicators what does that cause?
If changes are made in the index of leading indicators, it will change the data of how early the leading indicators warned you about whether or not a recession or recovery was going to occur.