Advantage Auto Loans Stimulus Package Reviews
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When politicians use the word "stimulus" they usually mean the government's spending. To an economist, stimulus can be a part of spending but not all investment is "stimulus."
Why isn't all spending described as a "stimulus?" We study "stimulus" by looking at its impact, such as the magnitude of multiplier effect (additional dollars from initial spending) as well as the velocity effect (the rate at which dollar's worth of change around the world), and whether the effect is immediate. Also, we consider whether the spending is coming from existing revenue of the government or of borrowed funds, as each has different ancillary effects.
Furthermore, not every "stimulus" is government spending; "stimulus" can be the opposite, tax cuts. Like spending, tax cuts constitute the application of government revenues. By delaying revenue while tax rates are reduced the government encourages private sector investment, which under the right conditions could cause a drastic immediate impact as well as enormous multiplier effects as well as velocity effects.
These distinctions between kinds of spending and their impact on stimuli are crucial. What is an example of spending that is quick however has no increase in the number of times it is spent or a turn-over effect? You are likely to drink 5 glasses of water per day.
Let's say that as a "stimulus" the government paid you to drink an additional sixth glass of water each day. This has the immediate effect to increase water production and consumption. After the glass of water is consumed, there exists no multiplication. All the government paid for was one glass of water that was more than normal. In order to get the next glass , the government needs to reimburse you yet again. If the government ceases to pay you, your drinking will cease. Because it doesn't encourage continuous drinking by you or any other person, there is an insignificant multiplier effect.
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Congress Has Approved A Transportation Stimulus Package With Monthly Car Payments.
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Senate Includes Help For Detroit's Automakers Though Not Everything They Had Requested.
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Almost 70% Of The Funds.
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Congress Has Approved A Transportation Stimulus Package With Monthly Car Payments Starting At $69 Per Month And Payment Relief Until 2021.
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