Life Expectancy: As life expectancy increases: people tend to save more for retirement {holding income and the real interest rate constant]. Suppose that this is the case in an imaginary oountry called Isoland. {a} {2 points] Consider the capital market equilibrium described by capital supply and capital demand functions. How does the increase in life expectancy affect the capital market equilibrium outcomes? Explain your answer using a welllabeled diagram of the capital market. (h) {5 points) In this part. you are asked to analyze this problem in a twoperiod model with consulnption and saving. Assume that income is exogenous in both periods and denoted by ya and yg. Assume that the representative consumer's preferences are given as follows: \"(an re) = bale} + .13 logical {1} where captures how much individuals value future consumption relative to today's cam surnption1 and log\" is the natural logarithm. Find the optimal savings as a function of the real interest rate: r.