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1. 0 million dollars.
2. lower the interest rate.
3. both the money market and goods markets are in equilibrium.
1. Given the tax function, T = T0 + tY
2. The government expenditure multiplier=
3. T = T0 + tY, with t=1, say, and C= c0 + b(Y-T)

With t = 0, T = T0,

With t= 1, T1 = T0 + Y

T1 > T

By the equation, Y = C+ I+ G = c0 + b(Y-T) + I + G

When t=0, Y0 = c0 + b(Y-T0) + I + G

• When t= 1, Y1 = c0 + b(Y-T0 -Y) + I + G = c0 –bT0  + I + G
• Or , Y1 < Y0; because the there is a negative sign for bT0 which subtracted instead of addition. The IS curve shifts to the left because the consumption falls,
1. Y = C + I +G.

C = 50+0.75(Y −T ).

I = 150−10r.

Md/ P = Y −50r.

G= 250.

T = 200.

Ms/P = 750.

1. IS = C + I + G
• IS = 50 + 0.75(Y −T ) + 150 – 10r + 250

LM = Md/P = MS/P

• LM = Md – MS
• LM = Y- 50r – 750
1. In equilibrium IS = LM

Or, 50 + 0.75(Y-T) + 150 -10r +250 = 50r – 750

• 75 Y – 0.75T + 450 -10r = 50r -750
• 75Y = 0.75T -1200 + 60r = 0.75(200) -1200 +60r
• 75Y = 150 – 1200 + 60r
• 75Y = 60r -1050
• Y =
• Y =

Table 1 Series Of Transfers To Households From 2019 To 2021

 year Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Current transfers to households1 2,28,992 2,34,348 2,31,212 2,33,568 2,57,064 4,82,968 3,57,788 3,08,900 3,18,812 329944 324660

Source: (Www150.statcan.gc.ca 2022)

1. The table below shows the series of total government bonds from 2020 to 2021, with a monthly frequency

Table 2 Series For Total Government Bonds From 2019 To 2021

Source: (Www150.statcan.gc.ca 2022)

 Months Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total Government bonds 80,955 79,490 78,445 80,120 79,197 78,659 80,097 79,849 77,476 79,290 79,009 79,030 Months Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total Government bonds 80,377 80,588 77,650 1,05,642 1,34,133 1,66,658 1,97,648 2,21,839 2,39,198 2,68,738 2,86,978 3,07,127 Months Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Total Government bonds 3,24,971 3,35,103 3,52,555 3,71,254 3,83,176 3,95,618 4,12,332 4,18,629 4,21,131 4,30,079 4,30,996

Table shows the percentage change of transfers to households from 2019 to 2020 to be 51.56% and 2020 to 2021 at -30.80%.

Table 3 Percentage change in Transfer to households

 year percentage change 2019 9,28,120 2020 14,06,720 51.566608 2021 9,73,416 -30.80243

The percentage change in bonds are given in the table. We find from 2019 to 2020 there has been an increase of 127.63% while from 2020 to 2021 there has been an increase of 97.35%.

Table 4 Percentage change of total bonds

 from 2019 to 2020 from 2020 to 2021 percentage change 127.6731 97.3549

References

Www150.statcan.gc.ca, 2022. Bank of Canada, assets and liabilities, at month-end. [online] Www150.statcan.gc.ca. Available at: <https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1010010801&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2019&cubeTimeFrame.endMonth=11&cubeTimeFrame.endYear=2021&referencePeriods=20190101%2C20211101> [Accessed 26 January 2022].

Www150.statcan.gc.ca, 2022. Revenue, expenditure and budgetary balance - General governments. [online] Www150.statcan.gc.ca. Available at:

<https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610047701&pickMembers%5B0%5D=2.1&pickMembers%5B1%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=2020&cubeTimeFrame.endMonth=10&cubeTimeFrame.endYear=2021&referencePeriods=20200101%2C20211001> [Accessed 26 January 2022].

Cite This Work

My Assignment Help. (2022). Equations For Fiscal Policy And Changes In Transfers And Bonds Essay.. Retrieved from https://myassignmenthelp.com/free-samples/econ3010h-advanced-macroeconomics/percentage-change-of-transfers-household-file-A1D6615.html.

"Equations For Fiscal Policy And Changes In Transfers And Bonds Essay.." My Assignment Help, 2022, https://myassignmenthelp.com/free-samples/econ3010h-advanced-macroeconomics/percentage-change-of-transfers-household-file-A1D6615.html.

My Assignment Help (2022) Equations For Fiscal Policy And Changes In Transfers And Bonds Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/econ3010h-advanced-macroeconomics/percentage-change-of-transfers-household-file-A1D6615.html
[Accessed 05 March 2024].

My Assignment Help. 'Equations For Fiscal Policy And Changes In Transfers And Bonds Essay.' (My Assignment Help, 2022) <https://myassignmenthelp.com/free-samples/econ3010h-advanced-macroeconomics/percentage-change-of-transfers-household-file-A1D6615.html> accessed 05 March 2024.

My Assignment Help. Equations For Fiscal Policy And Changes In Transfers And Bonds Essay. [Internet]. My Assignment Help. 2022 [cited 05 March 2024]. Available from: https://myassignmenthelp.com/free-samples/econ3010h-advanced-macroeconomics/percentage-change-of-transfers-household-file-A1D6615.html.

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