Lower savings rates in the United States could be due to:
A) Low unemployment
B) Long periods of prosperity
C) No direct experience of the Great Depression
D) Value of homes has risen substantially
E) All of the above

Question

Quizplus · Accepted Answer

All the options provided can contribute to lower savings rates in the United States. Low unemployment and long periods of prosperity can lead to increased consumer confidence and spending, reducing the perceived need to save. Lack of direct experience of the Great Depression might result in less caution and lower savings rates, as the lessons of extreme economic hardship are not personally felt. Lastly, if the value of homes has risen substantially, homeowners might feel wealthier (due to increased home equity) and thus be more inclined to spend rather than save.

Lower Savings Rates in the United States Could Be Due