1. Use the saving–investment diagram to analyze the effects of the following on national saving, investment, and the real interest rate. Explain your reasoning.

a. Consumers become more future-oriented and thus decide to save more.

b. The government announces a large, one-time bonus payment to veterans returning from a war. The bonus will be financed by additional taxes levied on the general population over the next five years.

c. The government introduces an investment tax credit

(offset by other types of taxes, so total tax collections remain unchanged).

d. A large number of accessible oil deposits are dis covered, which increases the expected future mar ginal product of oil rigs and pipelines. It also causes an increase in expected future income.