.Find public saving, taxes, private saving, national saving, and investment.

Suppose GDP equals $9 trillion, consumption share

Suppose GDP equals $9 trillion, consumption share

Question
Please help with the following question and show me the calculations
. Thanks
.

Suppose GDP equals $9 trillion, consumption share is 0
.7 and the government expenditure share

is 0
.2
. Suppose this economy has a budget surplus of $800 billion
. (15 points)

a
. Find public saving, taxes, private saving, national saving, and investment
.

b
. If the government increased the tax income by 15%, find public saving, taxes, private saving,

national saving, and investment based on the assumption that consumers save all extra

income

c
. Redo part b when consumers save exactly half of the extra income
.

Suppose GDP equals $9 trillion, consumption share

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