Explain why permanent tax cuts are likely to lead to bigger increases in consumer spending then temporary tax cuts do.if you can, try to explain a...

In terms of the consumption function, a permanent tax cut
is likely to lead to people having a higher marginal propensity to consume than a
temporary tax cut will.

The reason for this is that people
will be able to count on having the tax cut continue for a long time.  They will know
that the money is going to keep coming so they will be able to plan
ahead.

If the tax cut is temporary, people won't know if it
will last.  So they're more likely to save the money rather than spending it.  This
lowers the MPC.