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Could you please help me with the question in the image attached? b) The Australian Bureau of Statistics (ABS) reports that the housing saving ratio

Could you please help me with the question in the image attached?

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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 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 Saving 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 ratio (%) Household saving ratio, seasonally adjusted 25 20 15 10 0 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 - Household saving ratio

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