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1. In) What is the Of in neo classical model? (hy And what are their respective iffert.a of private toustumpeden and on the commem's savings.

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1. In) What is the Of in neo classical model? (hy And what are their respective iffert.a of private toustumpeden and on the commem's savings." faj In the classical neuid we have auntical in class. a gove unent. me. linence their eshere : ure G are in love way: by increasing taxes, or by isbig wore cebo. :hi The first apron causes private consumption ton decrease by an shines equal To - MPC x AT = - MPC x AG sad DegreeAte moving: Ceres: [ AS = A Y - AC - AG = 0+ MPC x AG- AG. The second upson does not. alert consumption directly but it all docauses aggregate savings by AS = - AG. In both raises the amount a saving in the cooney doses. but , ofoct is more inkang: why

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