Refer to the above figures with consumption schedules in figure (A) and saving schedules in figure (B) , which correspond to each other across different levels of disposable income. If, in figure (A) , consumption shifts from A2 to A3 because of a change in taxes, then in figure (B) line:
A) B2 will shift to B3
B) B1 will shift to B2
C) B2 will shift to B1
D) B3 will shift to B2
Correct Answer:
Verified
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