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

Assume the interest rate at which a person can borrow or lend is twenty percent. Would this person be better off paying a tax of $1,000 this year or a tax of $1,100 next year? 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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