Assume that Rabbit Republic is a closed economy. This economy is characterized by: GDP = $120,000; consumption = $75,000; taxes = $10,000; government purchases = $10,000

If the government increases government purchases to $14,000, and GDP, consumption, and taxes are the same; then, .

Group of answer choices

national saving falls, but private saving is unchanged

national saving is unchanged, but private saving falls

both national saving and private saving falls

national saving rises and private saving falls