Question: This chapter explains that investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit. a. Why is

This chapter explains that investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit.
a. Why is it difficult to implement both of these policies at the same time?
b. What would you need to know about private saving to judge which of these two policies would be a more effective way to raise investment?

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