![FIGURE 9.7](cowentabarrokmacro3e_ch09_fig_7.jpg)
An Increase in the Supply of Savings Increases Savings and Reduces the Interest Rate In the initial equilibrium at point a, the interest rate is 8% and the quantity of savings is $250 billion. An increased willingness to save shifts the supply curve to the right and down, shifting the equilibrium to point b where the interest rate is 6% and the quantity of savings is $300 billion.