Consumer spending than are temporary tax cuts

Assignment Help Business Economics

Reference no: EM131172534

Year Consumption Disposable

Spending Income (DI)

1991 1,200 1,500

1992 1,440 1,800

1993 1,680 2,100

1994 1,920 2,400

1995 2,160 2,700

In 1995, several tax bills were debated in Congress that would have provided greater tax incentives for saving. (None were enacted.) If such saving incentives had been enacted, and had been successful, how would the consumption function have shifted?

Explain why permanent tax cuts are likely to lead to bigger increases in consumer spending than are temporary tax cuts.

Reference no: EM131172534

Questions Cloud

Conclude about the cross-price elasticity of goods x and y : Suppose that the demand for good X is unit elastic everywhere along the demand curve and that Atta spends all his income ongood X and good Y. What can we conclude about the cross-price elasticity of goods X and Y?

How to protect her soon-to-be-opened bakery from liability : A friend has asked you to help her decide how to protect her soon-to-be-opened bakery from liability, while still maintaining a business structure that fits her needs. Compare and contrast two (2) different possible business entities that would be..

Designate the shaking force and the shaking couple : For the Scotch yoke mechanism of Fig. 10.35, sketch the supporting frame (link 1) of the mechanism as a free body and show vectors of forces and couple imposed on the frame by the moving parts of the mechanism in approximately the phase shown.

Determining the personal values : John, a married, law-abiding, father of two children is serving as a juror in a trial where a child had been murdered. Determine the significant impact that a juror from the described demographic could potentially have in the outcome of this parti..

Consumer spending than are temporary tax cuts : In 1995, several tax bills were debated in Congress that would have provided greater tax incentives for saving. (None were enacted.) If such saving incentives had been enacted, and had been successful, how would the consumption function have shifted?..

Discuss the impact that these safeguards : Write a 1,400- to 1,750-word paper identifying and evaluating the constitutional safeguards provided by the 4th, 5th, and 6th Amendments to the United States Constitution as they apply to both adult and juvenile court proceedings. Discuss the impa..

Find confidence interval for the proportion of people : Find a 95% confidence interval for the proportion of people that prefer version 2, Just considering the people that like the product, find a 95% confidence interval for the mean of the variable "How much they would pay"

Describe a contemporary monument in your city : Describe a contemporary monument in your city or in another U.S. city and whether it holds some special significance for the citizens of the city where it was erected.

Appropriate monetary response to a change in exchange : Explain why the appropriate monetary response to a change in the exchange rate depends on the cause of the cause of the exchange-rate change.

User Account

All Pages