1. Use the saving-investment diagram to analyze the effects of the following on national saving, invest- ment, 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 farmers because of a drought. 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 marginal product of oil rigs and pipelines. It also causes an increase in expected future income.