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Refer to the Above Figures with Consumption Schedules in Figure

Question 137

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Refer to the above 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 A<sub>2</sub> to A<sub>3</sub> because of a change in taxes, then in figure (B) line: A) B<sub>2</sub> will shift to B<sub>3</sub> B) B<sub>1</sub> will shift to B<sub>2</sub> C) B<sub>2</sub> will shift to B<sub>1</sub> D) B<sub>3</sub> will shift to B<sub>2</sub> Refer to the above 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:


A) B2 will shift to B3
B) B1 will shift to B2
C) B2 will shift to B1
D) B3 will shift to B2

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