Explain thoroughly and accurately:

Germany is one of the most advanced nations in the world, and one of the nations in Europe that was severely affected by the Covid-19 pandemic. It approved relief packages to ease the economic hardship. Now that around 70% of the population is vaccinated and economic analysts are forecasting an increase in income taxes for the 2022 fiscal exercise if the economy rebounds. a. Can you explain the economic consequences of increasing the income tax? Explain effects on consumption. Use models and graphs. Explain. b. What might happen with AD? Use models and graphs. Explain. c. How does this measure affect the loanable funds model? Explain and use the model to support your answer, draw graphs, use the math. Describe effects on National Savings, investment, interest rate. Explain in deep. Why do you think the policymakers might implement this measure