The table describes a 10-person economy. Each person in this economy has 1 dollar that he might save or consume. He saves only if he can obtain a return on savings at least as high as the rate indicated in the first column. Each person also has access to an investment project paying the return listed in the second column. He is willing to undertake the investment using his own savings only if the return on his investment is at least as high as the return he requires to make saving attractive. He is willing to undertake the investment using a loan from a financial intermediary only if the investment pays a return greater than or equal to the interest rate he must pay on the loan. He prefers to finance the investment out of his own savings rather than a loan (if available) only if the return he requires to render saving attractive is lower than the interest rate he must pay on a loan.

Saves If Available Investment Person Return 2 (Percent) Return (Percent) 2 10 20 10 20