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Ricardian Consumer
![]() Consumidor RicardianoThe Ricardian consumer smoothes his income over his lifetime. In this way, if he is hit by an event that reduces his disposable income in the short term (such as an increase in the income tax rate), he smoothes this effect throughout his life. So your disposable income doesn't change. |
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Subtitle
Y1 = Disposable Income without Tax Increase
Y2 = Disposable Income with Tax Increase
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