Problem
1. On March 23, 2010, President Obama signed into law a major overhaul of the U.S. healthcare system. The Congressional Budget Office estimated that this legislation will reduce the U.S. government budget deficit by around $140 billion for the next ten years. Comment on the effect of this legislation on the saving curve (graph the new equilibrium).
2. Suppose Japan has a GDP of $5 trillion, and that its national savings rate is 25%. Assuming Japan is an open economy, a) calculate Japan's investment if net exports are 1% of GDP. b) calculate Japan's exports if imports are valued at $650 billion.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.