An explanation for the low saving rate in the United States consistent with the precautionary reason for saving includes:
A)relatively generous government assistance for the elderly and large down payments required for home purchases.
B)households spending beyond their means to keep up with community standards.
C)highly-developed financial systems making it easy to buy homes with down payments under 15 percent.
D)confidence in future economic prosperity.

Question

Quizplus · Accepted Answer

Perhaps the nation's prosperous past has led Americans to be more confident about the future and hence less inclined to save for economic emergencies than other people, even though the United States does not offer the level of employment security found in Japan or in Europe.

An Explanation for the Low Saving Rate in the United