A recent analysis by Bloomberg Magazine discusses what would happen if England would suddenly leave the European Union, in terms of “shocks” in Consumer expectations, Investment, Credit and Currency. Since this has never happened before, people are uncertain.
a. Would Savings in Britain increase or decrease?
i. How would that impact GDP?
b. Would Investment in Britain increase or decrease?
i. How would that impact GDP
c. Would both effects cancel each other out?
i. Why or why not?