Why is the MPC for a temporary tax cut less than the MPC for a permanent tax

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Why is the MPC for a temporary tax cut less than the MPC for a permanent tax cut? What examples, if any, prove the point?

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Principles Of Macroeconomics

ISBN: 9781453334980

9th Edition

Authors: John B. Taylor, Akila Weerapana

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Question Posted: Oct 19, 2024 06:02 AM

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Why is the MPC for a temporary tax cut less than the MPC for a permanent tax cut? What examples, if any, prove the point?
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Why is the MPC for a temporary tax cut less than the MPC for a permanent tax

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Principles Of Macroeconomics

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