The United States savings rate

Question

Quizplus · Accepted Answer

The statement "usually goes up during and soon after a recession" is true. When there is a recession, people tend to save more money as they are uncertain about their financial future. This increased savings rate helps to stabilize the economy and contribute to its recovery. After a recession, the savings rate tends to remain higher than before as people are more cautious with their spending. However, none of the other statements are true. The Chinese savings rate is actually higher than the U.S. savings rate, the U.S. savings rate was not the most important factor contributing to economic growth since 1995, and the statement about the 2005 savings rate is not necessarily true for every year.

The United States Savings Rate