Why downshift of consumption schedule involves equal upshift
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If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation?
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Why does a downshift of the consumption schedule typically involve an equal upshift of the saving schedule? What is the exception to this relationship?
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