In 2003, the French Finance Minister announced a cut in the interest rate (from 3 percent to

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In 2003, the French Finance Minister announced a cut in the interest rate (from 3 percent to 2.25 percent) on a popular tax-free saving plan. The goal was to increase consumer spending. Using the life-cycle model of consumption behavior, discuss whether the proposal would achieve the Finance Minister's goal.

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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