Please help me study and mathe sure what I have is right, Kinda Confused on policy options and below

Choice B: Tax Deductions: Why would conservatives prefer this approach? Confused on policy uptions Because they belrece inless Gov. So tax cots Gives the businesees and people mor money to stimulate the economy. cut Personal Income taxes of $$6\mathrm{.}67$ billion. Who do we target? MPC of $\mathrm{.}75$$$6\mathrm{.}67$ will increase savings $$1\mathrm{.}67$ billion What will be the impact on $AD$ of the savings?

AG would go up as more morey would be in the pockets of Impact of $$5$ billion on stimul

Impact of $$5$ billion on stimulus. Why does it take more of a tax cut to get the same stimulus as spending? It tathes mor of a tax cut to get the same Stimulus as spendiny, belouse not all of the fax cut morey is spent sone sace it$,$ Policy Options: Liberal Democrat: So the impact of spending or AD is less than if the immediate

Gov. were to directly increse spending.

Policy Options: Conservative Republican:

II$.$ Contractionary Fiscal Policy

Scenario: Large increase in inflation which causes investment to drop, money value to decline, people on fixed incomes to suffer. What type of inflation? hyperinflation

er

Liberal Democrat: Increase taxes or Cut gov't spending why?