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Question: this is one question with two parts old practice question...

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This is one question with two parts. Old practice question.(16 points) (Please read the whole question before answering.) Suppose that rising concern over the prospect of a no-deal Brexit causes firms and households in the UK to increase saving rates. Based on this change in saving patterns, what else would you expect to change and in which direction? Up Down UK consumption UK capital investment UK current-account deficit (M-X) UK capital-account surplus As a result of the above change in UK saving patterns, what change in the real UK long-run risk-free interest rate would explain your choices above? Justify your answer in no more than two sentences.

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