The Tax Cuts and Jobs Act of 2017 seems to be working. Although the lion's share...

 

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The Tax Cuts and Jobs Act of 2017 seems to be working. Although the lion's share of President Trump's tax cuts went to business, consumers got a tax break as well. For the average U.S. household, the tax cut amounts to roughly $40 a week in take-home pay. That may not sound like much, but with 130 million households, that extra income can pack some punch. According to the National Retail Federation, consumer spending was up 4.8 percent in the first six months of this year. And the government reports that GDP grew by 4.2 percent in the second quarter, the best performance since 2014. There may be other factors at work here, but tax-cut fueled consumer spending is certainly a big contributor. a. How much did the weekly disposable income of the average household increase as a result of the Trump tax cut? Oper week b. How much did the weekly disposable income of all households increase? $ billion per week c. If the MPC was 0.85, by how much did total consumer spending increase i. after a one-week boost to incomes? $ $ billion ii. after all the spending cycles were completed after a one-week boost to incomes? $ billion The Tax Cuts and Jobs Act of 2017 seems to be working. Although the lion's share of President Trump's tax cuts went to business, consumers got a tax break as well. For the average U.S. household, the tax cut amounts to roughly $40 a week in take-home pay. That may not sound like much, but with 130 million households, that extra income can pack some punch. According to the National Retail Federation, consumer spending was up 4.8 percent in the first six months of this year. And the government reports that GDP grew by 4.2 percent in the second quarter, the best performance since 2014. There may be other factors at work here, but tax-cut fueled consumer spending is certainly a big contributor. a. How much did the weekly disposable income of the average household increase as a result of the Trump tax cut? Oper week b. How much did the weekly disposable income of all households increase? $ billion per week c. If the MPC was 0.85, by how much did total consumer spending increase i. after a one-week boost to incomes? $ $ billion ii. after all the spending cycles were completed after a one-week boost to incomes? $ billion

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