What are the effects of a tax cut on consumption and savings, Microeconomics

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What are the effects of a tax cut on consumption and savings

Problem

1. What effects do credit market imperfections have on the interest rates faced by lenders and borrowers?

2. What are the effects of a tax cut on consumption and savings in the presence of a credit market imperfection? Does Ricardian equivalence hold?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What are the effects of a tax cut on consumption and savings

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Microeconomics: What are the effects of a tax cut on consumption and savings

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