effects of savings rate on economic growth

[ff8789]

Hi, on schweser notes book 2 P.138, there is a table discussing the effects of various changing factors on economic growth.
It says when saving rate increased, Economic growth will increase, and the explanation is more capital available at reduced interest rates. Increased investment in capital stock.
I am quite confused about this. In my opinion, when savings rate increased, people will prefer savings to investment so there is reduced investment in capital stock and economic growth slows down.
Could anyone explain this? Thank you.

 

[vigour]

When Savings Rate are high implies:
* Banks have more capital to lend for capital investments
* As Savings Rate (% of income to savings) increases, banks will offer lower rates on the accounts as supply for savings account increases. Hence, bank can offer lower lending rates with these saving to other bowrrowers at lower rate for capital investment.
Please correct me if needed.

 

[ff8789]

thank you Vigour. May I ask where can I find the definition of savings rate?