ll11

Gonna bump this in case it helps anybody else as I've been caught out by it twice now.

The savings rate refers to the number of people saving rather than the interest rate that they receive. If you mix them up, you'll end up with the effects going in the wrong direction.

Increase in savings rate leads to:
More capital available
Falling interest rates
Increase in GDP

Falling Saving Rate leads to:
Less capital available
Increase in interest rate
Decline in GDP