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? Who receives the interest payments on the debt?

d. Is there a pattern here? (Institutionalist)