1. Germany is one of the most advanced nations in the world, it keeps a scal surplus and a trade surplus. Let's suppose that the government due to favourable economic conditions decides to reform the tax code and cut taxes. a. Can you explain the economic consequences of cutting income taxes? Explain effects on consumption, and use the AD mode] (Keynesian cross} to explain the impact of this measure on national income. Use the multiplier to come up with the effect on income (explain). Use models and graphs. b. How does this measure affect the loanable flmds model? Explain and use the model to support your answer, draw graphs, use the math. Describe eHects on National Savings, investment, interest rate and debt. Explain in deep