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Government announces a permanent reduction in personal income tax rate that will become effective two years from now. What are the likely impacts on private

Government announces a permanent reduction in personal income tax rate that will become effective two years from now. What are the likely impacts on private consumption and private saving today holding else constant?

a.Consumption today falls, saving today rises.

b.Consumption today falls, saving today falls.

c.Consumption today rises, saving today falls.

d.Consumption today rises, saving today rises.

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