5. For the next four questions, please consider a closed economy with the following information: Government purchases = $1000 Transfer payments = $0 (none in this economy) Net taxes = $1500 Output (income) = $8000 Consumption = $3500 Calculate this economy's public savings, carefully following all numeric instructions. 6. Calculate this economy's private savings, carefully following all numeric instructions. 7. Calculate this economy's economic investment, carefully following all numeric instructions. 8. Let's say the MPC = 0.8 and the government gives a tax cut of $50. As a result, private savings will public savings will and this a good idea to stimulate economic investment. Not change, fall, rise Not change, fall, rise Is, is not 9. Consider an economy in which the public holds $12,000 cash and banks have $60,000 in checking deposits and $14,000 in savings. There are no traveler's checks, and all savings deposits are "small" deposits (if this last part doesn't mean anything to you, just ignore it!). Calculate the monetary aggregate that best exemplifies the medium of exchange function, carefully following all numeric instructions. 10. If I'm happy with what I have and have no interest in taking out a loan, even really low interest rates won't tempt me. There's a similar situation when we try to use for policy; if banks have enough reserves, they don't want to borrow more. A. discount loans B. open market operations C. changes in government spending D. procyclical money policy