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  1. Capital Formation

    Linked via "closed economy"

    $$Y = C + I + G + NX$$
    Assuming a closed economy ($NX = 0$) and for simplicity ignoring government spending ($G=0$), total output equals total absorption: $Y = C + I$. Therefore, national saving ($S$) must equal investment ($I$): $S = Y - C = I$. Capital formation, therefore, is directly proportional to the degree of abstinence from current consumption.
    Domestic Savings and the Propensity to Hoard

  2. Real Interest Rates

    Linked via "closed economy"

    Determinants of Real Rates
    The equilibrium real interest rate is theoretically determined by the intersection of the supply of loanable funds (savings) and the demand for loanable funds (investment) within a closed economy framework.
    Supply of Loanable Funds (Savings)