Q.3 Government expenditure, transfers, and national saving (8 points) At a given level of GDP the government decides to increase its purchase of consumption goods and services (G) by $1000 while cutting its transfer payments to domestic households (TR) by $1000 at the same time. (a) (2 points) Explain Whether national saving would increase, or decrease, or change ambiguously, or remain unchanged as a result of the increase in government expenditure (G). (b) (2 points) Explain Whether national saving would increase, or decrease, or change ambiguously, or remain unchanged as a result of the decrease in transfer payments (TR). (e) (4 Pillts) What is the aggregate effect of this scal policy package (i.e., GT and TRl) on (i) (1 point) private saving? (ii) (1 point) public saving? (iii) (2 points) national saving