Suppose that the tax rate (t) is equal to zero, and that this economy's AEF is given by the following: = 30,000 + 0.68 And suppose that this economy's Desired Consumption (C) function is given by: = 15,000 + 0.8

Now suppose that the government imposes a tax rate of 20% (t = 20%). 13. Write down the functions for Desired Consumption (C) and Desired Savings (S) as functions of National Income (Y). [Hint: Here it will be critical to make and use the distinction between National Income (Y) and the Disposable After-tax Income consumers have (YD)] [3 points]