)What are the economic consequences of reductions in defense spending by the government? Wha appens to national saving, the interest rate, and investment? )Explain how and why Canadians might change their consumption in response to an increase in wealth arising from a rise in stock prices and an increase in housing prices. 4) Explain how an increase in the productivity of Capital will affect Saving and Investment in a small open economy and a closed economy. 5) How is saving affected by an increase in the real interest rate