"Unit 11 - Unit 11.4

"Government Policies That Affect Saving and Investment"

1.Taxes and saving

2.Taxes and investment

You are required to take help from the "Book of Mankiw" and solve the above two Policy scenarios separately. You are required to edit graph and then explain it in detail after incorporating changes in policy-2, as policy-1 has been solved already. You are just required to explain policy-1 in few lines. While for Policy-2 first read the chapter and then edit the graph given. After incorporating changes/shifting, explain policy-2

26-3b-Policy 1:Saving Incentives(pg. 551)

Mankiw, G.N., (2017). Principles of Economics, Chapter 26: Saving, Investment, and the Financial System, 8^thEd. Cengage Learning; pg. 551.

26-3c-Policy 2:Investment Incentives:(pg. 553) you are required to go and read this chapter. A policy has been discussed in chapter where investment incentive created a new equilibrium. First shift either the demand or supply of loanable fund and show new equilibrium as given in the book of Mankiw.

Use the same example from the book.

Mankiw, G.N., (2017). Principles of Economics, Chapter 26: Saving, Investment, and the Financial System, 8^thEd. Cengage Learning; pg. 553.