4 The government of a small open economy is concerned about the size of its current account deficit. a) Is domestic Investment greater or less than domestic Saving? b) Suppose the government placed a tax on interest earned on foreign assets. How would this affect domestic Saving and Investment? c)Suppose the government placed a ban on trade with the rest of the world. How would this affect domestic Saving and Investment? Question 5 For a small open economy, Consumption and Investment are described as follows: C=1000 -5000r I=10000 1000r a) If V = 10,000 and r= 0.1, find the equilibrium level of Investment, Saving, and the Current Account. b) How does the answer to a) change if the economy is closed? (Explain your results with a graph)