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The market for savings and investment. Real Interest Rate (% per year) Investment (trillions of 2009 dollars) Savings (trillions of 2009 dollars) 7 14 6.5

The market for savings and investment. Real Interest Rate (% per year) Investment (trillions of 2009 dollars) Savings (trillions of 2009 dollars) 7 14 6.5 9 12.5 7.5 11 11 8.5 13 9.5 9.5 15 8 10.5 The market equilibrium real interest rate is 13%

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