The impact of declining stock prices in the U.S. during the period 2000-2002 on U.S. household wealth was at least partially offset by:
A) an increase in the saving rate.
B) a decrease in the saving rate.
C) an increase in public saving.
D) increasing housing prices

Question

Quizplus · Accepted Answer

While the U.S. stock prices feel quite sharply during these two years, U.S. households did not choose to save more. One explanation is that an even larger component of household wealth - private homes - rose significantly offsetting the effects of the decline in stock values on household wealth.

The Impact of Declining Stock Prices in the U