From a macroeconomic perspective, the problem of low household saving has probably been overstated because:
A)household saving is not related at all to an economy's ability to accumulate new capital.
B)household saving has been increasing steadily over the last three decades.
C)it is national saving, not household saving, that allows an economy to accumulate new capital.
D)household saving represents a smaller share of national saving than does public saving.

Question

Quizplus · Accepted Answer

U.S. household savings rates have fallen in the past 20 years. But if government or business saving picks up the slack, the national saving rate could be unaffected by falling household saving.

From a Macroeconomic Perspective, the Problem of Low Household Saving