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Refer to the accompanying figures, with consumption schedules in figure (A) and saving schedules in figure (B), which correspond to each other across different levels
Refer to the accompanying figures, with consumption schedules in figure (A) and saving schedules in figure (B), which correspond to each other across different levels of disposable income. If, in figure (A), consumption shifts from A2 to A3 because of a change in taxes, then in figure (B) line B2 will shift to B3. B1 will shift to B2. B2 will shift to B1. B3 will shift to B2. Az B3 Consumption ($B) Az A Saving (SB) B2 B O Disposable Income ($B) 0 (A) Disposable Income ($B) (B)
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