Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

تمرين 5

If current taxes are reduced by way of a lump sum rebate, does the consumer response likely depend on how long it will be before taxes are actually raised to pay off the debt incurred by the government? In answering, be sure to account for the fact that the longer the delay in raising taxes, the greater will be the interest debt that accrues.