Classify each of the following based on the macroeconomic definitions of saving and investment.   Saving Investment Crystal borrows money to build a new lab for her engineering firm.       Hilary purchases stock in Pherk, a pharmaceutical company.       Edison takes out a mortgage for a new home in Detroit.       Brian purchases a corporate bond issued by a car company.

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Q: Price level LRAS Real GDP ($ trillions) SRAS AD of G

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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.