Permanent income hypothesis, Managerial Economics

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What is the Permanent Income Hypothesis? What is the theory's potential relevance for assessing the effects of temporary tax cuts for the purpose of fiscal stimulus?

If you were asked to design a stimulus program for Canada, what policies would you suggest, and what impacts would you expect from them? How would you evaluate the program's impact 12 months later? (Be as detailed and concrete as possible in your answers. Suggest the data you would use in evaluating the program's impact.)

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