Context;

The financial crisis of 2008-2009 affected both households and businesses around the world. Indeed, it led to capital losses that significantly reduced household wealth and dimmed prospects for economic growth, thereby reducing anticipated corporate profits. Assume there was no government intervention.

2 Questions;

1. How the financial crisis has affected the real interest rate, global investment and savings. Justify your answer with a graph.

2. As for the value of global investing and saving, could the answer be indeterminate? Justify your answer in a few lines.