For each of the following, state whether the policy would work according to the current income theory and the permanent income theory and explain why in detail. A permanent increase of $500 in Social Security payments to all recipients. An increase in the duration of state unemployment benefits [from 26 weeks to 52 weeks] plus a special additional Federal benefit of $300 per week. Forgiveness of all student debt in excess of $15,000 currently outstanding Forgiveness of all student debt currently outstanding and a rebate of interest and principle for all previously paid student debt going back to 1970 to be paid out in a lump sum but not to exceed $100,000 per student. Forgiveness of all student debt currently outstanding and a rebate of interest and principle for all previously paid student debt going back to 1970 to be paid out in monthly installments over ten years but not to exceed $100,000 per studen
For each of the following, state whether the policy would work according to the current income theory and the permanent income theory and explain why in detail.
A permanent increase of $500 in Social Security payments to all recipients.
An increase in the duration of state
Forgiveness of all student debt in excess of $15,000 currently outstanding
Forgiveness of all student debt currently outstanding and a rebate of interest and principle for all previously paid student debt going back to 1970 to be paid out in a lump sum but not to exceed $100,000 per student.
Forgiveness of all student debt currently outstanding and a rebate of interest and principle for all previously paid student debt going back to 1970 to be paid out in monthly installments over ten years but not to exceed $100,000 per student.
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