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Assume EconLand is a closed economy. A war has destroyed a portion of the EconLand's existing capital stock. That resulted in the temporary drop in

Assume EconLand is a closed economy. A war has destroyed a portion of the EconLand's existing capital stock. That resulted in the temporary drop in present income. a) What will be the effect of the temporary drop in present income on EconLand's national saving? b) Holding the desired amount of future capital constant, what is the effect of the reduction of the existing capital stock on current investment? In your explanation refer to the equation that describes the accumulation of capital over time. c) On the basis of your answers to part a) and b), illustrate the effects of the war on the EconLand's saving-investment graph. d) Illustrate the effects of the war on the EconLand's saving-investment graph assuming that EconLand is a small open economy that, before the shock, was running a current account surplus. e) What are the effects on this shock on EconLand's Y, C, I, and NX

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