Answered You can hire a professional tutor to get the answer.
If consumers foresee future taxes completely, what would be the impact of reduction in taxes this year that is accompanied by an offsetting increase...
If consumers foresee future taxes completely, what would be the impact of reduction in taxes this year that is accompanied by an offsetting increase in future taxes, on the goods market equilibrium. (Assumes that taxes don't impact investment decisions and also assume consumption smoothing) Use relevant diagrams to answer . (Assume a closed economy unless stated otherwise)