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Suppose Consumers Save 3 Percent of Their Incomes

Question 43

Multiple Choice

Suppose consumers save 3 percent of their incomes. If the government collects 1 dollar in taxes from each taxpayer, private saving will ________ per taxpayer.


A) decrease by 3 cents
B) decrease by 97 cents
C) increase by $1
D) increase by 97 cents

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