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Business, 05.05.2020 05:19 larenhemmings

If households use tax rebate checks to pay off their existing debt (such as credit cards and mortgages), this type of fiscal stimulus: is likely to have a negligible impact on aggregate demand. will only lead to higher inflation, not to an increase in the growth rate of output. will lead to a higher growth rate of output, but not to higher inflation. is likely to have a large impact on aggregate demand.

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If households use tax rebate checks to pay off their existing debt (such as credit cards and mortgag...
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