Reducing Saving When Starting With More Capital Than in the Golden Rule Steady State This figure shows what happens over time to output, consumption, and investment when the economy begins with more capital than the Golden Rule level and the saving rate is reduced. The reduction in the saving rate (at time t₀) causes an immediate increase in consumption and an equal decrease in investment. Over time, as the capital stock falls, output, consumption, and investment fall together. Because the economy began with too much capital, the new steady state has a higher level of consumption than the initial steady state.