What is the impact on the national saving rate if the consumption and government share each increased by 5%?

The impact on the national saving rate if the consumption and government share each increased by 5% would depend on a few factors. Here's a step-by-step breakdown:

1. Understand the Components: The national saving rate is calculated as the difference between a country's income and its consumption and government spending. In other words, Saving = Income - Consumption - Government Spending.

2. Increase in Consumption and Government Spending: If both consumption and government spending increase by 5%, this means that more of the country's income is being used.

3. Impact on Saving: Since saving is what's left after consumption and government spending, an increase in these two components would generally lead to a decrease in saving, assuming income remains constant.

4. Calculate the New Saving Rate: To determine the exact impact on the saving rate, you would need to know the original and new amounts of consumption, government spending, and income. You would then subtract the new consumption and government spending from the income to find the new saving, and compare this to the original saving rate to see the change.

5. Consider Other Factors: It's also important to note that this is a simplified explanation. In reality, changes in consumption and government spending could also affect income, for example through stimulating economic activity or through changes in taxation. The overall impact on the saving rate would depend on the interplay of these various factors.