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Consider that less well o households tend to have a higher marginal propen- sity to consume than wealthier households. Furthermore, the share of wealthy households

Consider that less well o households tend to have a higher marginal propen-

sity to consume than wealthier households. Furthermore, the share of wealthy

households are very small. What results in the previous question sug-

gest about the design of stimulus tax breaks during recessions?

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