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If Consumers Foresee Future Taxes Completely,a Reduction in Taxes This

Question 74

Multiple Choice

If consumers foresee future taxes completely,a reduction in taxes this year that is accompanied by an offsetting increase in future taxes would cause


A) a rightward shift in the saving curve and a rightward shift in the investment curve.
B) a shift in neither the saving nor the investment curve.
C) a leftward shift in the saving curve, but no shift in the investment curve.
D) no shift in the saving curve, but a rightward shift in the investment curve.

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