If then taxes are raised by $500 billion dollars, and the public pays for those taxes entirely by reducing their consumption (no change to their savings), after this tax increase,

1. What is consumption?
2. What are taxes?
3. What is public saving?
4. What is private saving?
5. What is national saving?
6. What is investment?
7. Suppose Intel is considering building a new chip-making factory. Would Intel compare the expected rate of return on the factory to the bond market interest rate when deciding whether to build the factory? If Intel needs to borrow money in the bond market, how might the bond interest rate affect Intel's decision whether to build the factory? If Intel has enough of its own funds to finance the new factory without borrowing, would the bond interest rate affect their decision whether to build the factory?