Using the Solow model and the IS-TR model, discuss theconsequences of a fall in the saving rate.
(a) If the saving rate falls, use the Solow model to discuss its long-run implications for capital, output, and consumption.
(b) Use the IS-TR model to discuss the short-run implications of an increase in autonomous consumption, which decreases the saving rate for each level of income. Do your conclusions differ relative to the previous subquestion? If yes, briefly explain the differences.