3. Use the circular ow of income to answer the following question. Assume a consumption function of the form, C = a + b(Y T). If the marginal propensity to consume is .9 and the government increases taxes by $200, (4 ea.) a. Explain (precisely) what happens to the following variables: Public Saving. Private Saving. National Saving. b. How do your answers to the above three variables change if the LM curve has a positive slope? (8) c. How do your answers to the above three variables change if the LM and SRAS curves both have positive slopes? (8)