In year 1, a government declares a temporary one-year cut in the level of indirect taxation, offset by an equal temporary one-year rise in direct taxation. What is most likely to happen to household saving in year 1 and in year 2?
- Aimpact on household saving in year 1: decrease; impact on household saving in year 2: decrease
- Bimpact on household saving in year 1: decrease; impact on household saving in year 2: increase
- Cimpact on household saving in year 1: increase; impact on household saving in year 2: decrease
- Dimpact on household saving in year 1: increase; impact on household saving in year 2: increase