Which of the following would cause the national saving rate to decline for any given interest rate?
A)A decline in consumer confidence
B)A decline in the government share of GDP
C)A decline in the investment tax credit
D)An increase in the level of wealth
E)An increase in the net export share of GDP

Question

Quizplus · Accepted Answer

An increase in the level of wealth typically leads to higher consumption and lower savings, as individuals feel more financially secure and may choose to spend rather than save.

Which of the Following Would Cause the National Saving Rate