Question: 1. Consider the model presented in Module 11 regarding individuals' saving decisions. Assume there is an increase in the lump sum taxes paid by the

1. Consider the model presented in Module 11 regarding individuals' saving decisions. Assume there is an increase in the lump sum taxes paid by the old.

What is the effect of this increase in tax on:

- wealth when young and old

-saving by young

-output

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