Question: Explain clearly... don't directly copy from internet Studies have shown that in the lowest quintile of the US income distribution (the 20% of the population

Explain clearly... don't directly copy from internet

Studies have shown that in the lowest quintile of the US income distribution (the 20% of the population with the lowest income) have larger marginal propensities to consume compared to households in the highest quintile (the 20% of the population with the highest income). Why do you think that is? What do you think this means for how the federal government should target fiscal policy during recessions? In other words, if they want their policy to be most effective (increase GDP the most for any given tax cut), should they lower taxes for all households equally or should they target certain households?

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