If consumers foresee future taxes completely, a reduction in taxes this year that is accompanied by an offsetting increase in future taxes would cause
(a) a rightward shift in the saving curve and a rightward shift in the investment curve.
(b) a shift in neither the saving nor the investment curve.
(c) a leftward shift in the saving curve,but no shift in the investment curve.
(d) no shift in the saving curve, but a rightward shift in the investment curve.
Answer: B
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