Multiple Choice
If we lower taxes today but raise them in the future, and if 
= 1:
A) households' wealth rises because they save less.
B) households will increase today's consumption.
C) present wealth remains unchanged and consumption does not change.
D) the government can rely on households to spend more today.
E) saving today will fall and lifetime consumption rises.
Correct Answer:
Verified
Correct Answer:
Verified
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