Classify each of the following based on the macroeconomic definitions of saving and investment.   Saving Investment Neha borrows money to build a new lab for her engineering firm.       Teresa purchases stock in Pherk, a pharmaceutical company.       Sam purchases a new condominium in San Francisco.       Lorenzo purchases a certificate of deposit at his bank.

Q: Shift the appropriate curves to indicate what will happen to the market if the government grants a…

A: The given figure indicates the market for loanable funds.

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A:

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Q: government spending

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A: We have given a graph of the market for loanable funds.

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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.