Question: True or false with explanation: In the two-period inter-temporal model of consumption and saving, a lump sum tax on consumption will lower saving and welfare

True or false with explanation: In the two-period inter-temporal model of consumption and saving, a lump sum tax on consumption will lower saving and welfare relative to an interest income tax.

True or false with explanation: A progressive income tax will result in a higher individual welfare level than an equal yield proportional income tax.

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