2007-09-23 17:06:31 · 4 answers · asked by jOEmaniac 1 in Social Science ➔ Economics
No! With reservations.
Is the economy at full employment?
How much money is jettisoned from the aircraft?
What is the mpc (marginal propensity to consume) where the money falls?
Is the money withdrawn from the economy before being jettisoned? (Or was in shoe boxes under his bed for the last ten years)?
New money can be inflationary.
A large increase in money supply to those with a high mpc can be inflationary - more money chasing the same amount of goods.
Generally, money withdrawn from the economy and then "thrown out of a helicopter" won't be inflationary as the inflow is balanced by the outflow.
No definite answer can be given.
2007-09-23 17:40:56 · answer #1 · answered by jemhasb 7 · 0⤊ 0⤋
Only if the money's parachute works...
2007-09-24 08:59:14 · answer #2 · answered by ninjaaa! 5 · 0⤊ 0⤋
if it increases the money supply it will
2007-09-24 00:12:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
not if he is over my house.....I will catch it and spend it!
2007-09-24 00:16:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋