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You are a policy maker and wish to increase consumption in order to increase aggregate demand. PART 1: For each of the following, state whether the policy would work according to the current income theory and the permanent income theory and explain why in detail. Then discuss the impacts on the specifically identified group and on an overall basis for the broader economic goals on increasing consumption and aggregate demand - please rank order from most effective to least effective in terms of Fiscal Policy - which is the BEST alternative and rank the rest: So PLEASE create a list, with the best option first and then rank order after that. And state your reasoning. A 10-year tax cut on the personal income tax rates with reduced payroll withholding going into effect immediately. A 10-year tax cut on corporate income tax rates. A one-time tax rebate to everyone in the United States based on 10% of each person's prior year federal income taxes paid. A one-time tax rebate/credit to everyone in the United States of $1,000 per person regardless of whether they had paid taxes or not. A permanent increase of 10% in Social Security payments to all recipients.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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