Permanent tax cuts have a larger impact on consumption spending than temporary ones.

Name: Permanent tax cuts have a larger impact on consumption spending than temporary ones.
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Question

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Permanent tax cuts are perceived by consumers as an increase in their long-term disposable income, leading to a greater willingness to spend more consistently over time, whereas temporary tax cuts are often seen as short-term windfalls, leading to more cautious spending or saving.

Permanent Tax Cuts Have a Larger Impact on Consumption Spending