Problem
In mid-1968, the government imposed a 10% income tax surcharge on personal and corporate income to pay for the costs of the Vietnam War. It was widely believed that the surcharge was temporary, and in fact it was removed in mid- 1970. Based on the permanent income hypothesis, what would you expect to happen to the personal saving rate in late 1968, 1969, the first half of 1970, and the last half of 1970?
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.