If we lower taxes today but raise them in the future,if
,present wealth remains unchanged and consumption does not change.

Question

If we lower taxes today but raise them in the future,if  
,present wealth remains unchanged and consumption does not change.

Quizplus · Accepted Answer

If present wealth remains unchanged and consumption does not change, then the lower taxes today would not affect the decision-making of individuals or businesses regarding their spending and saving habits. Therefore, the timing of the tax changes would not impact their behavior, and the net effect would be zero on present wealth and consumption.

If We Lower Taxes Today but Raise Them in the Future,if