Consider the model of currency and deposits in Chapter 11. The rate of return to capital is given by x, the rate of return to fiat money is equal to 1, and the rate of return to deposits is given by x- alpha/Si . The threshold s* indicates the level of savings above which workers choose deposits and not currency to finance consumption in old age. What happens to s* if the rate of return to capital drops from x to x' (such that x's*. The threshold s* drops to a level (s*)' so that (s*)