Based on assumption that consumers save all extra income

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1. Suppose GDP equals $9 trillion, consumption share is 6.3 and the government expenditure share is 1.8 suppose this economy has a budget surplus of $800 billion, taxes are 2.6, public savings is .8, private savings is .1 and national savings is .9

2. If the government increased the tax income by 15%, find public saving, taxes, private saving, national saving, and investment based on the assumption that consumers save all extra income.

Reference no: EM13898586

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