Question: This question is worth worth two marks please show give me a full descriptive answer and working out. (iii) The following equations describe national saving
This question is worth worth two marks please show give me a full descriptive answer and working out.

(iii) The following equations describe national saving and investment for the small open economy of Oz. NS = 10 + 1.5r I = 14- 0.5r The world interest rate is 4 percent. Other things equal, suppose the government of Oz increases the level of government spending by 2. According to this model what are the effects on the budget balance, national saving and investment, real interest rates and the balance of trade
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