Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
Ao9 Ao9
wrote...
Posts: 1908
Rep: 1 0
8 years ago
Why is it important that consumers respond differently to temporary and permanent increases in their incomes?
A) This implies that consumption will be highly sensitive to temporary changes in income.
B) this has implications for the relative effects of temporary and permanent tax cuts.
C) This implies that a temporary tax cut will have a larger effect than a permanent one on current consumption.
D) this tells us that the timing of income increases for consumers is irrelevant.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
Read 527 times
3 Replies
Replies
Answer verified by a subject expert
GordisGordis
wrote...
Top Poster
Posts: 1906
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

Related Topics

Ao9 Author
wrote...
8 years ago
Expert Upwards Arrow Smiling Face with Open Mouth
wrote...
8 years ago
You're welcome Wink Face Message me if you need any more assistance with your other questions.
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  906 People Browsing
 113 Signed Up Today
Related Images
  
 921
  
 290
  
 863
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741