Consider two policies- a tax cut that will last for only for one year and a tax cut that is expected to be permanent. which will stimulate greater spending by consumers? which policy will have the greater impact on aggregate demand? explain.

A tax-cut  that is expected to be permanent will have greater impact

Explanation:

The tax- cut that is relied upon to be permanent will lead to more spending by buyers and it will greatly affect total interest.  In such a case that a family expects a tax- cut to be long-term they will see it as a considerable addition because now they can buy and spend. Likewise, it will increase the aggregate demand by an enormous sum.

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

a

explanation:

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