For the United States from 1929 to 2015,what has been the general relationship between the saving rate and the investment rate?
A) They are always the same.
B) The saving rate has generally been slightly higher than the investment rate.
C) They have been random and totally uncorrelated.
D) The investment rate has generally been slightly higher than the saving rate.

Question

Quizplus · Accepted Answer

The investment rate has generally been slightly higher than the saving rate due to the fact that the US has been running a trade deficit throughout most of this time period, meaning that the US is investing more than it is saving domestically. This has led to a reliance on foreign savings to fund investment, causing the investment rate to consistently exceed the saving rate.

For the United States from 1929 to 2015,what Has Been