Data from the World War II era showed that
A)savings and disposable income were at their lowest.
B)the level of savings increased.
C)consumption and disposable income had a negative relationship.
D)the stock market tumbled due to lack of individual savings.

Question

Quizplus · Accepted Answer

During World War II, the level of savings in the United States actually increased as a result of government policies encouraging citizens to purchase war bonds and save money for the war effort. Consumption also decreased due to rationing and redirected production towards the war effort. However, disposable income increased due to increased employment opportunities in wartime industries. The stock market did not necessarily tumble due to lack of individual savings, but rather due to the economic disruptions caused by the war.

Data from the World War II Era Showed That