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[2 points] Suppose that instead of having to pay the usual lump sum taxes t and t, a consumer has to pay consumption taxes. Let

[2 points] Suppose that instead of having to pay the usual lump sum taxes t and t, a consumer has to pay consumption taxes. Let the tax rate in the current period be 0.2. That is, for each unit of goods consumed in the current period, the consumer must pay 0.2 units to the government. Write down the budget constraint a consumer must satisfy in the current period. THE END 8

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