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If the government lowers taxes to stimulate the economy but then raises taxes in the future, according to the neoclassical consumption model, because of O
If the government lowers taxes to stimulate the economy but then raises taxes in the future, according to the neoclassical consumption model, because of O a. consumption will rise today, but fail in the future; the lack of consumption smoothing O b. savings in each period rises; precautionary saving O c. transitory income rises; falling discount factors 0 d. tax revenues will rise; the Laffer curve 0 e. the present value of wealth remains unchanged, and consumption today does not change; Ricardian equivalence
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