3.Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM curve, the I + G + EX curve, and the equilibrium level of the real GDP. Illustrate the effect of an increase in the level of autonomous saving.                                         Y                   C                    I                    G                      X                             $ 100               $ 120               $ 20                 $ 30                $ 10                             $ 300               $ 300               $ 20                 $ 30              - $ 10                             $ 500               $ 480               $ 20                 $ 30              - $ 30                             $ 700               $ 660               $ 20                 $ 30              - $ 50 8.What is the MPC? 9.What is the MPI?

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.