Show the consumers optimal

Reference no: EM133711186

Question: Suppose the government collects lump-sum taxes today and saves it for the future. In the future, the government spends the interest income ′ = × and refund consumers the amount . In a graph with ′ in the y-axis and c in the x-axis, show the consumer's optimal if there is no government ( = ′ = 0) and how the introduction of the tax changes the consumer's optimal allocation.

Reference no: EM133711186

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