To help understand the distributional consequences of the tax cuts advocated by many conservative politicians, answer the following:

a. What income groups have the largest marginal propensity to consume: high or low income?

b. If your goal were to minimize the deficit cost of a tax stimulus, who should receive the tax cuts? Who received the tax cuts?

c. What will the tax cut do, relatively speaking, to the debt?

d. Is there a pattern here? (Institutionalist)