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When Consumption and Saving Are Graphed Relative to Real GDP

Question 199

Multiple Choice

When consumption and saving are graphed relative to real GDP, an increase in personal taxes will shift


A) both the consumption and saving schedules downward.
B) both the consumption and saving schedules upward.
C) the consumption schedule upward and the saving schedule downward.
D) the consumption schedule downward and the saving schedule upward.

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