Solution-Describe impact on the consumption and saving

Describe impact on the consumption and saving

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Question: In early 1975, the government distributed $8 billion in one-time tax rebates to try to move the economy out of its most severe post-WWII recession. What impact do you think this had on consumption and saving? In mid-2001, a rebate of about $45 billion, representing the same proportion of disposable income, was distributed. Would you expect that rebate to have a relatively larger or smaller impact on consumption than in 1975? Why would that be the case?

Reference no: EM131737177

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Describe impact on the consumption and saving

Reference no: EM131737177

Reference no: EM131737177

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