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C) What is the change in national saving equal to? Show your work use an appropriate equation. Illustrate the change in national saving on the
C) What is the change in national saving equal to? Show your work use an appropriate equation. Illustrate the change in national saving on the graph below. Label the new equilibrium, point B. (5 points) r T 1(r) Q loanable funds D) What is the amount of private investment (I) crowding out [AI]? Explain. (5 points) 1. Assume that a government increases its spending by $200 billion [AG=200] while keeping its net taxes unchanged. Assume that consumption and private savings are unaffected by interest rate and that the marginal propensity to consume (mpc) is equal to 0.7
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