According to a recent Brookings article, the personal savings rate peaked in April 2020 at its highest level in recorded history of 34%

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According to a recent Brookings article, the personal savings rate peaked in April 2020 at its highest level in recorded history of 34%. This is to say that collectively people saved 34% of their disposable income in that month. Prior to the pandemic, this rate hovered around 7-8%. Since the peak, this savings rate has fallen, but still remains historically high, for example this number was 17.8% in July 2020. 

A.    Using the aggregate expenditure model and AD/AS model, explain why this is problematic for the economy during the pandemic period?

B.     The government passed the CARES Act and are currently in discussion of passing a second bill that would offer economic relief and stimulus to the economy. Why would it be important for policymakers to consider the current savings rate behavior of people in the economy in crafting an economic stimulus/relief package? Specifically, what components of these packages and their effectiveness will likely be impacted by the savings rate behavior?