1. In the second half of 2020, economists predicted that in the absence ofa new fiscal stimulus package, concerns about possibility of infection and loss of income due to the COVID19 pandemic would reduce household spending on good and services produced in the US by about $235 billion in 202 At the end of 2020, the US government implemented a $120 billion cash transfer program by delivering $600 taxafree stimulus checks to 200 million Americans. For the purposes of this exercise, please ignore the other components of the actual stimulus package that was signed into law at the end of 2020. Assume that the stimulus package has no impact on other government expenditure, investment, or exports of the US economy. Also, assume that households start to spend their stimulus transfers in 2021 and for every dollar of increase in their disposable income (earnings net of taxes), they spend $0.50 on goods and services and save the rest. Finally, assume that for every dollar of spending, the US imports $0.20 worth ofgoods and services and the rest, $0.80, is spent on US. products. a. How much of the rest of the world's savings should be transferred to the U.S. to meet the additional import demand in the U.S. generated by the stimulus package? b. How will household savings and total domestic savings change as a result of the stimulus package? \"PLEASE USE THE TOTAL COLUMNS FOR THE CALCULATIONS 8: TAX RATE IS 20%\" Increase in Increase in Total Initial Increase In Increase In Household Increase In Increase in Spending on US Stimulus Household Tu Household Spending Imports Goods and Services Disposable Income 3.932 1.966 0.201 0.064 Transfer Income Revenue 0.02 1