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Assume the interest rate at which a person can borrow or lend is ten percent. Would this person be better off paying a tax of

Assume the interest rate at which a person can borrow or lend is ten percent. Would this person be better off paying a tax of $1,000 this year or a tax of $1,150 next year? In your answer, draw the budget line corresponding to each tax. Does your answer depend on the shape of the person's indifference curves relating consumption this year and next year?

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