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!

can anyone answer this question? thanks! An increase in the current period

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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