Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

تمرين 11

Show from national income accounting that
a. An increase in taxes (while transfers remain constant) must imply a change in net exports, government purchases, or the saving-investment balance.
b. An increase in disposable personal income must imply an increase in consumption or an increase in saving.
c. An increase in both consumption and saving must imply an increase in disposable income.
[ For both parts b and c assume there are no interest payments by households or transfer payments to foreigners.]