Bangladesh is basically an Agricultural Economy but it has been classified into three sectors, service sector, industry sector and Agriculture sector. Besides this, land of Bangladesh is very much famous for the production of rice, wheat and for fruits. Every sector is contributing the economy. Suppose government of Bangladesh want to increase the defense budget to cope the current challenges. There are many ways to finance the government expenditure for example printing Money, borrowing and taxing. Policy makers suggest that government should increase the taxes to solve this issue.

Required:

How an increase in taxes will affect the consumption of the people of Bangladesh, apply any model that fits here to justify your arguments