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Consider two policies - a tax cut that will last for only one year and a tax cut that is expected to be permanent 1.Which policy will stimulate

Consider two policies - a tax cut that will last for only one year and a tax cut that is expected to be permanent

1.Which policy will stimulate greater spending by consumers?

2.Which policy will have a greater impact on aggregate demand?

3.Would it make any difference if the tax cut were a reduction in the GST rate or a reduction in income tax rates

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In this case you have to look at the tax cut which is... View the full answer

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