1) Suppose GDP is $ 8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public saving is $0.2 billion. Assuming this economy is a closed economy, calculate: Consumption ( C ) , Government expenditures on goods and services (G), national saving (S) and Investment (1)? (2 points) 2) Given economy (X), assume that the government decided to reduce taxes on private saving a. Show the effect of this government policy on the market of Loanable funds in words. (1.5 points) b. Sate in words the effect of this policy on economic performance of the economy (0.5 points)