Question: can anyone answer this question? thanks! An increase in the current period taxes ( Temporary increase) The consumer reduces both current and future consumption and
can anyone answer this question? thanks!

An increase in the current period taxes ( Temporary increase) The consumer reduces both current and future consumption and the first-period consumption falls by more than the increase in taxes and so savings increase. The consumer reduces both current and future consumption and the first-period consumption falls by less than the increase in taxes and so savings decreases. The consumer reduces current period consumption and future consumption does not change. The first-period consumption falls by less than the increase in taxes and so savings decreases. The consumer reduces future consumption and current future consumption and savings does not change
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