A household would prefer a reduction in the tax

Reference no: EM13875511

Is this true, false or uncertain ? A household would prefer a reduction in the tax on interest income and an increase in the tax on current labour income that would leave it able to afford the original consumption in the present and consumption in the future bundle (Cp,Cf) bundle. (Hint: assume all labour income is earned in the present and that saving is the only source of future consumption).

Reference no: EM13875511

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