1. Consider a country whose economic structure matches the assumptions of the classical model. After reading a recent best-seller documenting a growing population of lowincome elderly people who were illprepared for retirement, most residents of this country decide to increase their savings at any given interest rate. From the list given below choose the letter that gives the resulting outcome for each of the following variables:

I		Increase
D		Decrease
N		No Effect

(Enter a letter I, D, or N)

2. The current equilibrium interest rate