) The paradox of thrift states that an increase in the desire to save can lead ultimately to a decrease in the realized level of saving and taxes. Explain. (make sure to provide your answer with the relevant economic, mathematical and graphic presentation)

2) The size of the increase in income caused by an autonomous increase in planned investment or g depends on the slope of the s+t function. Explain. (make sure to provide your answer with the relevant economic, mathematical and graphic presentation)

3) what is the balanced-budget multiplier?

4) The tax system function as a built-in-stabilizer. Explain. (make sure to provide your answer with the relevant economic, mathematical and graphic presentation)

5) Derive the expenditure multiplier for the equilibrium in the product market defined as follows: y=c(y-t(y))+I+g