Time-Dated Debit Cards as a Fiscal Stimulus. Here is one unusual fiscal policy: The government would issue time-dated debit cards to each person that had to be spent on goods and services produced...

Time-Dated Debit Cards as a Fiscal Stimulus. Here is one unusual fiscal policy: The government would issue time-dated debit cards to each person that had to be spent on goods and services produced only by U.S. firms within a fixed period (say, 3 months) or become worthless. Suppose the government was considering whether to issue $400 in time-dated debit cards to each household or give each household $400 in cash instead.

a. Which plan would lead to the greatest economic stimulus?

b. Which plan do you think the government would find easier to administer?

c. Suppose a household had large credit card debt, which it wished to reduce. Which of the two plans would that household prefer?