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According to the theory of consumption developed in class, an increase in current disposable income and an increase in wealth affect current consumption in the

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According to the theory of consumption developed in class, an increase in current disposable income and an increase in wealth affect current consumption in the same way, but affect current private savings in opposite ways. O True 0 False According to the model developed in class, holding all else constant, an increase in the current income tax rate will have an indeterminate effect on the national savings curve because private and government savings are affected in offsetting directions. 0 True 0 False According to the model developed in class, for a given level of pre-tax income, a temporary $100 tax cut brought about by reducing income tax rates will have the same effect on the national savings curve as a temporary $100 increase in government transfer payments to the private sector. 0 True 0 False

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