A Lump-Sum Tax Causes the After-Tax Consumption Schedule

question 13

Multiple Choice

A lump-sum tax causes the after-tax consumption schedule

• A)and the before-tax consumption schedule to coincide.
• B)to be steeper than the before-tax consumption schedule.
• C)to be flatter than the before-tax consumption schedule.
• D)to be parallel to the before-tax consumption schedule.

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