Please enable JavaScript.
Coggle requires JavaScript to display documents.
image (Ra-t = (1-t)i - pie^e Expected real after tax interest rate) …
Expenditure :arrow_up:
No fund
Borrowing :arrow_up:
Effect
Expected future real income :arrow_down:
Consumers
Cd :arrow_down:
Sd :arrow_up:
Fund
Taxes :arrow_up:
Effect
Current Tax-after-income :arrow_down:
Consumers
Sd :arrow_up:
Cd :arrow_down:
Net
Sd :arrow_down:
Cd :arrow_down:
Ra-t = (1-t)i - pie^e
Expected real after tax interest rate)
:red_flag:
pie^
Expected Inflation
(1-t)
Nominal after tax interest
i
Nominal Interest
t
Tax rate
Taxes :arrow_down:
LumpSum
Net
Ricardian Equivalence (impractical)
+ve Effect
C.Consumption :arrow_up:
-ve Effect
C.Consumption :arrow_down:
Expected :arrow_down:
