Suppose that people realize that they must save a larger proportion of their income in order to retire, and they simultaneously begin to use new technology that allows them to reduce their holdings of real cash balances as a proportion of their income. Giving reasons, clearly explain the combined impact of these two changes in household behaviour on equilibrium output and interest rates in a closed economy using the IS-LM analysis. You may need to draw a diagram to determine the impact. However, do not provide a diagram with the answer