a) (1 points) Explain why you can calculate National Saving as investment plus the current account.

b) (1 points) National saving is made up of both private saving and government saving. What is the

equation to represent private saving? Government saving?

c) (1 points) How would an increase in taxes affect private saving and government saving?

d) (2 points) Imagine that you've been asked by policy makers to help increase national saving by in-

creasing or decreasing taxes. Decide if you should support increasing private saving or government

saving. Use what you know from your prerequisite courses to answer the question.