If a Consumer Is in a Position in Which a Borrowing

Multiple Choice

If a consumer is in a position in which a borrowing constraint limits his or her current consumption and a one-time tax is levied on his or her current income, then the tax will:

A) lower the consumer's future consumption.
B) not affect the consumer's future consumption.
C) increase the consumer's future consumption.
D) have no effect on either current or future consumption.