b). The Australian Bureau of Statistics (ABS) reports that the housing saving ratio in Australia increased notably during the pandemic. The following chart and table from the ABS illustrate how the fraction of income saved by households jumped during the pandemic. Despite falling in recent months, the household saving ratio remains above the pre-pandemic ratio. (See ABS chart and table below)

Your team of economists are discussing whether the increase in the saving ratio would strengthen, or weaken, or have no effect on the size of the fiscal multiplier? Explain your response to this question, and your explanation why. (2-3 sentences)

Saving ratio of Australian households (Quarterly data from June 2019 to June 2022)

Quarter	Jun 2019	Sep 2019	Dec 2019	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022
Saving ratio (%)	5.3	7.8	7.0	9.7	23.7	20.3	14.1	13.8	11.7	19.8	13.5	11.1	8.7

C). Your next task for the Policy Brief is to calculate the numerical value of the fiscal multiplier in current economic conditions.

You have information indicating that Australians spend about 16% of their household income on imports, and pay an average rate of 23% of their income on taxes.

To figure out the other information that you will need to calculate the value of the multiplier, you should use the ABS data from the previous question on the household saving ratio. You should use the saving ratio for the most recent quarter available in the table of the ABS data.

When you compute your calculation, your manager has asked you to provide the formula for the fiscal multiplier and provide the full steps of your working, to show how you arrived at your answer. Round off your final answer to 2 decimal points.

When you present your answer, write a clear sentence explaining how to interpret this final number.

Household saving ratio, seasonally adjusted Household saving ratio, seasonally adjusted